VanEck Bitcoin ETF (CBOE: HODL)

VanEck Bitcoin ETF is a Delaware statutory trust that was formed to hold bitcoin and issue shares representing fractional ownership of the trust. The trust’s primary activity is to acquire and safeguard bitcoin through third party custodians while offering investors an exchange traded product that tracks the price of bitcoin. Shares are listed on the Cboe BZX Exchange under the ticker HODL and can be bought and sold in traditional brokerage accounts.

The trust generates revenue mainly through the sponsor fee which is 0.20 percent of average daily net assets and is paid monthly to VanEck Digital Assets LLC the sponsor. This fee compensates the sponsor for services such as administration marketing and oversight of the trust’s operations. No other revenue streams are disclosed in the filing.

Within the landscape of bitcoin exchange traded products VanEck Bitcoin ETF holds a notable position due to its low cost structure and the reputation of its sponsor VanEck. Competitors include other spot bitcoin ETFs such as those offered by iShares Fidelity and Grayscale as well as direct bitcoin investment vehicles and bitcoin futures. The trust’s advantages stem from its use of established custodians like Gemini and Coinbase its transparent net asset value calculation and its listing on a major exchange which together provide investors with a regulated and accessible way to gain bitcoin exposure.

The trust serves a diverse customer base that includes institutional and retail investors who hold shares through brokerage accounts. Authorized participants that create and redeem shares include Jane Street Capital LLC Virtu Americas LLC Macquarie Capital Inc. and ABN AMRO Clearing USA LLC. Liquidity providers that support the trust’s creation and redemption process are JSCT LLC Nonco LLC and Cumberland New York LLC.