VanEck Bitcoin Trust (HODL), a prominent Bitcoin ETF, saw a remarkable surge in daily inflows following VanEck’s bold decision to waive management fees for an entire year, reducing them from 0.2% to 0%. This strategic move, effective until March 31, 2025, or until the ETF reaches $1.5 billion in assets under management, aimed to enhance the fund’s appeal amidst the growing competition in the Bitcoin ETF market.
The announcement led to a substantial influx of $119 million into the VanEck Bitcoin Trust, resulting in the addition of over 1,600 bitcoins to its holdings. This influx marked the largest single-day increase since the ETF’s launch in January, propelling its total assets to over 6,000 BTC, equivalent to approximately $440 million. This surge in assets solidified its position as the sixth-largest U.S. spot Bitcoin ETF, surpassing competitors like Invesco (BTCO) and Valkyrie (BRRR).
The rise in Bitcoin ETFs’ popularity coincided with Bitcoin’s price rally, surpassing the $72,000 mark and reaching unprecedented levels. Investors’ increasing confidence in digital assets as a legitimate investment class contributed to the heightened demand for Bitcoin ETFs. VanEck’s record-breaking inflow was mirrored by nearly $1 billion in combined inflows from nine newly launched Bitcoin ETFs, offsetting the $500 million outflows from the Grayscale Bitcoin Trust (GBTC).
Furthermore, the broader digital asset fund landscape witnessed robust growth, with CoinShares reporting inflows exceeding $2.7 billion last week, primarily driven by Bitcoin products accounting for $2.6 billion. This trend underscores investors’ strong appetite for Bitcoin exposure through regulated financial instruments like ETFs.