Asset manager VanEck has announced an extension of its fee waiver for the VanEck Bitcoin ETF (HODL), aiming to attract investors in the competitive Bitcoin exchange-traded fund (ETF) market. According to the November 25 announcement, the fee waiver will now remain in effect until January 10, 2026, covering up to $2.5 billion in assets under management (AUM).
Details of the Fee Waiver Extension
Previously set to expire in March 2025 and limited to the first $1.5 billion in net assets, the updated waiver reflects VanEck’s response to growing investor interest in Bitcoin ETFs. Kyle DaCruz, VanEck’s director of digital asset products, explained that the original threshold of $1.5 billion is close to being reached.
In a statement, DaCruz said, “We hope this fee waiver extension will encourage investors to explore the potential of Bitcoin and digital assets exposure in their portfolios.”
The VanEck Bitcoin ETF’s baseline management fee is 0.20%, which is competitive but slightly higher than Grayscale Bitcoin Mini Trust’s 0.15% fee. Waiving management fees has become a common strategy among crypto ETF providers, with most fee waivers initially set to last six months to a year after launch.
Competitive Landscape
VanEck’s Bitcoin ETF currently holds approximately $1.28 billion in net assets, according to the company’s website. While this is a significant figure, it trails several competitors, including the iShares Bitcoin Trust (IBIT), which leads the market with $46 billion in AUM.
Bitcoin-focused ETFs have seen substantial growth in 2025, bolstered by increased adoption of the cryptocurrency and the introduction of user-friendly ETF products. According to Bloomberg Intelligence, total net assets in US Bitcoin ETFs surpassed $100 billion for the first time on November 21.
Bryan Armour, director of passive strategies research at Morningstar, highlighted two key reasons for the rise of spot Bitcoin ETFs: the ease of access they provide for new investors and the superior product design.
“These ETFs allowed first-time Bitcoin investors—especially those unfamiliar with wallets or crypto exchanges—to enter the market,” said Armour. “They also benefit from cheaper trading, low fees, and excellent Bitcoin storage practices.”
VanEck’s Strategy and Bitcoin’s Outlook
By extending its fee waiver, VanEck is positioning itself to compete more effectively in a market dominated by larger players. Investor interest in Bitcoin ETFs surged after President-elect Donald Trump’s victory in the November 5 election, signaling a crypto-friendly political climate.
The fee waiver may help VanEck capture a larger share of the growing ETF market while reinforcing Bitcoin’s position as a key asset class in portfolios!
