VanEck Bitcoin ETF charges lower fees than BlackRock’s iShares Bitcoin Trust, but there’s a catch

If you’re shopping for a spot Bitcoin ETF purely on price, VanEck’s HODL is currently the cheapest option on the shelf. The fund is charging investors exactly nothing in fees right now, compared to the 0.25% expense ratio on BlackRock’s iShares Bitcoin Trust ETF (IBIT).

The reason is straightforward: VanEck is waiving its standard 0.20% sponsor fee on assets up to $2.5 billion through July 31, 2026. With HODL sitting at roughly $1.06 billion in assets under management, that waiver has plenty of runway left.

The fee math, and why it matters less than you think

Here’s the thing about ETF fees. On paper, paying 0% versus 0.25% looks like a no-brainer. For every $10,000 invested in IBIT, you’re handing BlackRock about $25 a year. HODL investors are paying zero. Over a multi-year holding period, that gap compounds.

IBIT commands somewhere between $53 billion and $58 billion in assets under management. That’s roughly 50 times the size of HODL. Scale like that translates directly into tighter bid-ask spreads, deeper order books, and better execution for large trades.

In English: if you’re moving serious capital in and out of a Bitcoin ETF, IBIT’s liquidity advantage can easily offset the fee savings HODL offers. A few basis points in slippage on a large trade will eat your expense ratio savings for breakfast.

What happens when the waiver expires

VanEck’s 0% fee is a promotional play, not a permanent feature. Once the fund either hits $2.5 billion in assets or crosses the July 31, 2026 deadline, the standard 0.20% fee kicks in.

Even at 0.20%, HODL would still undercut IBIT’s 0.25% by five basis points.

Both HODL and IBIT launched in early January 2024, following the SEC’s landmark approval of spot Bitcoin ETFs. The two funds also differ in their custody arrangements. HODL uses Gemini as its custodian, while IBIT relies on Coinbase Custody.

What this means for investors choosing a Bitcoin ETF

If you’re a long-term holder with a moderate allocation who plans to buy and forget, HODL’s fee structure is genuinely attractive. Zero fees now, 0.20% later, on an identical underlying asset.

If you’re an active trader, institutional allocator, or anyone who values the ability to move in and out of positions with minimal friction, IBIT’s liquidity moat is hard to ignore.

Whether you hold HODL or IBIT, your returns before fees will be nearly identical. The marginal differences come from tracking error, fee drag, and execution costs. The bigger bet, by far, is on Bitcoin itself.