VanEck Bitcoin ETF ends zero-fee period, misses $2.5B growth target
In brief
- HODL Bitcoin ETF zero-sponsor-fee period expired July 31 with $1.076 billion in net assets
- Fund fell $1.424 billion short of $2.5 billion threshold required to extend waiver
- 0.20% annual sponsor fee now applies to all trust assets
The shortfall
HODL's net assets of $1.076 billion represented just 43.0% of the $2.5 billion threshold. The fund fell approximately $1.424 billion short of what VanEck needed to maintain fee-free trading. VanEck filed the latest extension on November 25, 2025, replacing an earlier January 10, 2026 deadline with the July 31 end date.
The timing underscores the competitive pressure in the Bitcoin ETF space. HODL recorded net outflows of $87.6 million across 169 dated sessions from November 25 through July 30, suggesting the waiver's expiration date weighed on investor sentiment. On the fund's final day of zero fees, HODL attracted $2.3 million in net inflows, representing approximately 0.99% of the $233.1 million net inflow across tracked U.S. spot-Bitcoin products.
Fee structure in context
At HODL's July 30 asset level, a 0.20% annual sponsor fee would amount to approximately $2.15 million if assets remained unchanged. HODL's 0.20% sponsor fee will match the Bitwise Bitcoin ETF's fee after the waiver expires. It sits one basis point above the Franklin Bitcoin ETF's 0.19% fee and below the iShares Bitcoin Trust ETF's 0.25% fee.
The waiver's expiration reflects the fund's struggle to gain traction in an increasingly crowded market. Investors seeking the lowest-cost Bitcoin exposure now face a clearer choice among competing products, each with distinct fee schedules and asset bases.
