VanEck Reduces Spot Bitcoin ETF Fee
VanEck has submitted a filing with the SEC to reduce the sponsor fee for its spot Bitcoin ETF from 0.25% to 0.20%. The fee reduction will be effective from February 21. This move puts VanEck alongside Bitwise and Valkyrie as one of the spot Bitcoin issuers with the lowest sponsor fee. Other asset management firms have also been reducing their fees since the SEC approved multiple applications in January. Invesco and Galaxy Digital recently filed an update to notify the SEC of a fee reduction from 39 bps to 25 bps for their Bitcoin ETF.
Grayscale Maintains High Sponsor Fee
Unlike other issuers, Grayscale Investments is confident in maintaining its 1.5% sponsor fee for its Bitcoin ETF. CEO Michael Sonnenshein believes that Grayscale’s track record and diversified investor base justify the higher fee. He suggests that other issuers with lower fees are only trying to attract investors but may not be able to sustain this tactic. However, data shows that these issuers are currently performing better than Grayscale in terms of relative inflows into their ETF products. Analysts also note that Grayscale has experienced outflows, while the broader Bitcoin ETF market has seen significant inflows.
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