The competition for Bitcoin ETF is heating up as VanEck Russia ETF attracts $200 million in funds by waiving fees.

Zhitong App noticed that investors have poured over $200 million into the VanEck Russia ETF's Bitcoin spot ETF, which previously waived fees on the first $1.5 billion in assets until the end of March next year.

With the influx of funds, driven by strong demand from investors for Bitcoin exposure, competition among cryptocurrency ETF issuers is heating up. On Wednesday, the price of Bitcoin hit a new record of $73,664, rising 3.6% as of 9:15 am London time.

Data shows that the VanEck Russia ETF's Bitcoin Trust manages around $516 million in assets, attracting net inflows of $333 million since its launch in January, with most of the funds flowing in over the past two days after the fund significantly reduced Bitcoin fees from 0.20%.

This is the second fee reduction by the fund in competition with rivals like BlackRock and Fidelity Investments, which have attracted net inflows of $11.4 billion and $6.4 billion, respectively.

Other issuers, such as Bitwise and Invesco Ltd., have also temporarily waived fees or will do so until their funds reach a certain size.

Grayscale Investments LLC announced on Tuesday the launch of its Bitcoin ETF clone product, the Grayscale Bitcoin Mini Trust, after losing billions to low-cost competitors. Data shows that since January 11, the Grayscale Bitcoin Trust, which charges the highest fee of 1.5%, has seen outflows of over $11 billion.

On Tuesday, outflows from the Grayscale Bitcoin Trust dropped from nearly $500 million the previous day to $78 million. This means a total net inflow of $1.04 billion into U.S. Bitcoin ETFs, the largest daily inflow since their launch.

The early popularity of 10 Bitcoin ETFs has attracted $11 billion in just two months. Coupled with the upcoming Bitcoin network "halving" - an event that will halve the supply of new Bitcoins - this may further intensify competition for investor funds.