Fee-Free Period Concludes for VanEck's Bitcoin Fund

The promotional zero-sponsor-fee period for the VanEck Bitcoin ETF, which trades under the ticker HODL, officially ends today, July 31. The fund concluded the waiver period with $1.076 billion in net assets, a figure reported as of July 30. This amount represents only 43.0% of the $2.5 billion asset threshold that was part of the waiver's conditions.

Because the fund's assets were approximately $1.424 billion below the target, the fee waiver remained fully in effect for all assets through its final day.

Introduction of New Fee Structure

Starting after July 31, a 0.20% sponsor fee will be levied on all assets within the trust. This change is in accordance with VanEck's latest fee-waiver filing. By Friday morning, the company had not publicized another extension, and a review of the fund's SEC submissions feed revealed no newer fee-waiver filings.

Based on HODL's asset level on July 30, the new 0.20% annual sponsor fee would generate approximately $2.15 million in revenue, assuming the asset base remains constant. For an individual investor, this rate translates to an annual cost of $20 for every $10,000 invested, before accounting for changes in the ETF's share price.

Understanding the Fund's Costs and Mechanics

It is important to note that the sponsor fee does not represent the total cost of ownership. An investor's overall return can also be affected by other expenses, such as brokerage commissions, bid-ask spreads, premiums or discounts to the net asset value (NAV), and taxes.

The mechanics of the fee waiver were more nuanced than a simple cap. VanEck had agreed to waive the sponsor fee on the initial $2.5 billion of the trust's assets through July 31. If the fund's assets had surpassed that level before the deadline, only the portion above $2.5 billion would have been subject to the 0.20% fee, resulting in a weighted average sponsor fee. Since the target was not reached, this scenario did not occur.

A Look at Fund Flows and Performance

The decision to implement the July 31 end date was made in the latest extension filed by VanEck on November 25, 2025, which superseded an earlier Jan. 10, 2026 deadline.

Data from Farside Investors' full daily table shows that between November 25 and July 30, spanning 169 dated sessions, HODL experienced net outflows totaling $87.6 million. However, this flow total does not directly measure the change in assets under management (AUM). Net assets are also influenced by the fluctuating value of Bitcoin, as well as creations, redemptions, and other expenses. Therefore, flow data alone cannot definitively signal investor rejection or predict future performance after the fee is instated.

A snapshot of the most recent session provides additional context. On July 30, HODL attracted $2.3 million in new investments. This accounted for about 0.99% of the total $233.1 million net inflow recorded across all tracked U.S. spot-Bitcoin products on that day. Farside listed HODL's cumulative net inflows at $1.146 billion, a figure distinct from its $1.076 billion in net assets.

Competitive Positioning

With the expiration of its fee waiver, HODL's 0.20% sponsor fee positions it competitively within the market. Its fee will now match that of the Bitwise Bitcoin ETF. Furthermore, HODL will be less expensive than the iShares Bitcoin Trust ETF, which carries a 0.25% fee, but slightly more expensive than the Franklin Bitcoin ETF and its 0.19% fee, a difference of one basis point.

Ultimately, HODL's zero-fee promotion is concluding based on its calendar end date, not by achieving the $2.5 billion asset milestone.