The VanEck Bitcoin exchange-traded fund (ETF) has witnessed a surge in investments, surpassing $200 million, following the decision to waive fees for the first $1.5 billion in assets until March next year. This move comes amid intensifying competition in the crypto ETF space, driven by soaring investor demand for Bitcoin exposure.
Meanwhile, with the recent surge in Bitcoin price which sends its price to a new all-time high, the race among ETF issuers to attract investors has escalated.
VanEck Bitcoin ETF Notes $200M Inflow Amid Competitive Landscape
VanEck’s Spot Bitcoin ETF has garnered significant attention from investors, with inflows exceeding $200 million in just two days, propelled by fee waivers until March 2025. Since its launch in January, the VanEck Bitcoin Trust (HODL) has experienced robust growth, managing approximately $516 million in assets, as reported by Bloomberg.
Meanwhile, the robust inflow follows the recent fee reduction, from 0.20% to 0%, further bolstering investor confidence and resulting in a net inflow of $333 million, particularly notable over the past two days. This development underscores the increasing appetite for Bitcoin exposure among institutional and retail investors alike.
It’s worth noting that the market participants are keeping a close watch on the U.S. Spot Bitcoin ETF, amid robust inflow into the investment instruments. Besides, the significant inflow also reflects the growing confidence of the Wall Street players towards the crypto, which has also contributed to the recent rally in Bitcoin price.
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Intensified Competition In The Market
The competition in the crypto ETF arena intensifies as issuers vie for investor attention. Notably, BlackRock Inc. and Fidelity Investments have emerged as formidable contenders, attracting net inflows of $11.4 billion and $6.4 billion, respectively.
To stay competitive in the space, various other ETF issuers like VanEck, which includes Bitwise and Invesco Ltd., have opted for temporary fee waivers or reductions. On the other hand, Grayscale Investments LLC, facing pressure from low-cost rivals, recently launched the Grayscale Bitcoin Mini Trust, following substantial outflows from its existing Bitcoin Trust.
Despite charging the market’s highest fee of 1.5%, the Grayscale Bitcoin Trust has experienced significant net outflows, amounting to over $11 billion since January 11. However, recent data indicates a decline in outflows, signaling potential stabilization for Grayscale’s offerings amid the evolving landscape of crypto ETFs.
Meanwhile, the fee wavering of VanEck seems to have fuelled confidence among the investors, as seen by the robust inflow following the strategic move.
Notably, as of writing, the Bitcoin price was up 2.02% to $73,298.80, with its one-day trading volume soaring 18% to $64.16 billion. The flagship crypto has touched a high of $73,637.47 in the last 24 hours, suggesting the strong confidence of the investors towards the crypto.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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