VanEck rewards bitcoin ETF investors after hitting inflows milestone

VanEck has lowered its annual management fee on its Bitcoin exchange traded fund (ETF) (VBTC) after it saw over $18 million in inflows since its inception on 20 June.

The fund’s fee will be reduced to 0.49 per cent, with VanEck CEO and Managing Director for AsiaPacific, Arian Neiron, saying it speaks to the demand for cryptocurrency from investors, but offers the added benefit of being packaged in a regulated investment vehicle.

“The response to VBTC from investors and across the investment community has been remarkable. While still polarising, bitcoin is no longer on the fringes and is evolving into the mainstream,” he said.

“We are in the midst of a paradigm shift following the ASX’s approval with a flurry of bitcoin ETFs listing, and likely more to come.

“Investors need to be mindful of not only the investment risk of the asset class itself but importantly, the fund and its longevity and the risk surrounding the fund managers launching these funds.

“Bitcoin ETFs have only been available in Australia for a short time and yet we’ve already seen multiple funds fold.”

VanEck was the first fund manager to launch a bitcoin ETF on the Australian Securities Exchange (ASX) after receiving necessary regulatory approvals.