Industry Updates

VanEck halves fee on bitcoin ETN

The VanEck Vectors Bitcoin ETN (VBTC) has seen its fee cut from 2% to 1%

Tom Eckett

Martijn Rozemuller

VanEck has slashed the fee on its bitcoin exchange-traded note (ETN) in half less than three months after launch.

The VanEck Vectors Bitcoin ETN (VBTC) has seen its total expense ratio (TER) reduced from 2% to 1%, just five basis points higher than the cheapest bitcoin ETP available on the European market, the WisdomTree Bitcoin ETP (BTCW).

VBTC has gathered $176m assets under management (AUM) since launching on the Deutsche Boerse in November 2020.

The ETP tracks the MVIS CryptoCompare Bitcoin VWAP Close index that tracks the price of bitcoin which is currently trading at $55,000.

Investors can gain exposure to bitcoin through an ETN which is physically replicated instead of needing to use a wallet which is usually the case for cryptos.

Bitcoin ETP landscape hots up

Martijn Rozemuller (pictured), head of Europe at VanEck, commented: “We are seeing a lot of interest in VBTC.

“By reducing costs, we aim to pass on the positive economies of scale achieved through rapid growth to customers, allowing them to participate more directly in the performance of bitcoin in the future via an ETP.”

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