Key Points
- VanEck’s Bitcoin ETF, HODL, reported a net increase of $109 million and $620 million in BTC in Q1 2024.
- The ETF also revealed a $123,000 expenditure related to its sponsor fee.
A recent filing with the Securities and Exchange Commission (SEC) provided insight into the financial performance of the spot Bitcoin ETF (exchange-traded fund) HODL, issued by VanEck’s digital asset division.
Q1 Performance of HODL
As of the first fiscal quarter ending March 31, 2024, HODL’s Bitcoin investment was 8,711 BTC, valued at $619,067,103. The fund experienced a $109 million increase in net assets, as per the filing.
HODL also reported $20 million in total liabilities and a $6 million net realized gain on its Bitcoin investment as of March 31. As of April 30, 2024, it had 8.2 million shares.
About HODL and VanEck
The VanEck Bitcoin Trust, also known as HODL, is an investment vehicle that provides investors with exposure to Bitcoin without them needing to physically hold the cryptocurrency. The fund’s sponsor is VanEck Digital Assets LLC, and HODL’s shares are listed on the Cboe BZX stock exchange.
The SEC approved HODL, along with 10 other spot Bitcoin ETFs, on January 10, 2024. On May 10, HODL registered $8.1 million in volume.
Sponsor Fee Details
VanEck disclosed that it spent approximately $123,000 on expenses associated with its sponsor fee. “The Trust pays the Sponsor a unified fee of 0.20% of net assets that accrues daily and pays monthly,” VanEck stated in the filing.
Before February 21, 2024, the sponsor fee was 0.25%. However, from March 12, 2024, through March 31, 2025, the Sponsor agreed to waive the entire Sponsor Fee for the first $1.5 billion of the Trust’s net assets.
On February 20, the day before the sponsor fee change took effect, HODL’s daily trading volume skyrocketed 1,000% to $300 million from around 32,000 individual trades. The day before, HODL’s daily trading volume had been $25.5 million.
