VanEck cuts fees on Bitcoin ETF

VanEck has announced a modest fee reduction on its popular Bitcoin ETF (VBTC), as investor interest in the crypto coin surges following the change in US administration.

Management fees for the VBTC will be cut by five basis points to 0.45% p.a., with the fund manager noting Australian investors’ increasing appetite for digital currency assets.

VanEck boasts that its VBTC fund is Australia’s “largest, fastest growing and most cost-effective bitcoin ETF”, with net assets “fast approaching” $250 million.

VanEck chief executive and managing director for Asia Pacific Arian Neiron noted “strong momentum in bitcoin over the last few months”.

“The increased inflows to bitcoin ETFs demonstrate Australian investors are moving away from observer status and dipping their toes in the water,” he said, hailing VanEck’s “deep experience in digital assets management” and pioneering push to regulate crypto assets in the US.

VanEck was also the first to launch a bitcoin ETF on the Australian Securities Exchange (ASX).

“We are at an inflection point for Bitcoin adoption,” Neiron added. “The bitcoin market is now in blue-sky territory, and governments around the world, including in Australia, are working on developing regulatory environments for cryptocurrency that will provide greater protection to investors.”

Neiron sees continuing strong prospects for bitcoin under Trump, with “recent policy announcements from the US government indicating a number of positive/green signals, reinforcing potential further upside for this emerging asset class”.

“In Australia, we’re seeing more advisers incorporate bitcoin exposures based on client demand, and the combination of cost efficiency, ASX availability and a research housing rating have driven the bulk of these flows to VBTC,” said Neiron.

In the year to 20 February, the VBTC price has risen by more than 55%, and currently trades at AU$31.10.