The helimagnets Cr$_{1/3}M$S$_2$ ($M$ = Nb or Ta) have attracted renewed attention due to the discovery of a chiral soliton lattice (CSL) stabilized in an applied magnetic field, but reports of unusual low-temperature transport and magnetic properties in this system lack a unifying explanation. Here we present electronic structure calculations that demonstrate the materials are half-metals. There is also a gap-like feature (width in range 40-100 meV) in the density of states of one spin channel. This electronic structure explains the low-temperature electronic and magnetic properties of Cr$_{1/3}M$S$_2$ ($M$ = Nb or Ta), with the gap-like feature particularly important for explaining the magnetic behavior. Our magnetometry measurements confirm the existence of this gap. Dynamic spin fluctuations driven by excitations across this gap are seen over a wide range of frequencies (0.1 Hz to MHz) with AC susceptibility and muon-spin relaxation ($\mu^+$SR) measurements. We show further how effects due to the CSL in Cr$_{1/3}$NbS$_2$, as detected with $\mu^+$SR, dominate over the gap-driven magnetism when the CSL is stabilized as the majority phase.