Mar 13, 2024
VanEck’s Bitcoin ETF Sees $200 Million Inflow After Waiving Fees
, Bloomberg News
(Bloomberg) -- Investors have poured over $200 million into VanEck’s spot Bitcoin exchange-traded fund after it waived fees for the first $1.5 billion in assets until the end of March next year.
The inflows come just as competition among crypto ETF issuers is heating up, driven by strong investor demand for Bitcoin exposure. The price of the original cryptocurrency hit a new record of $73,664 on Wednesday, rising 3.6% as of 9:15 a.m in London.
The VanEck Bitcoin Trust, which manages about $516 million, has attracted a net inflow of $333 million since its launch in January, with the bulk of it coming in over the past two days after the slashing the fee from 0.20% according to data compiled by Bloomberg.
This marks the second fee reduction by the fund as it competes with offerings from rivals like BlackRock Inc. and Fidelity Investments, which have attracted net inflows of $11.4 billion and $6.4 billion, respectively.
Other issuers — Bitwise and Invesco Ltd. — have also waived charges temporarily or until their funds reach a certain size.
Grayscale Investments LLC on Tuesday announced the launch of a clone of its Bitcoin ETF, called the Grayscale Bitcoin Mini Trust, after losing billions to low-cost rivals. The Grayscale Bitcoin Trust, which charges the market’s highest fee of 1.5%, has witnessed a net outflow of more than $11 billion since Jan. 11, data compiled by Bloomberg show.
Outflows from the Grayscale Bitcoin Trust fell to $78 million on Tuesday from almost $500 million the day before, the data show. That meant US Bitcoin ETFs raked in a net $1.04 billion in total, the biggest daily inflow since they launched.
A spokesperson for Grayscale didn’t immediately respond to an emailed request for comment outside of regular business hours.
The early popularity of the 10 Bitcoin ETFs have lured $11 billion in two months. That coupled with the network’s upcoming ‘halving’ — an event that will cut the supply of new Bitcoin in half — is likely to further intensify competition for investor dollars.
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