News - Bitcoin ETF trading volume at record high

By Mike Hesp

Bitcoin ETF trading volume at record high

Bitcoin (BTC)
ETF

Bitcoin ETFs have been a huge success. Now the trading volume of BTC funds is reaching new heights. What's behind this?

Yesterday, Feb. 20, Bitcoin listed ETF's highest trading volume since their approval in the US. Overall, the volume totaled nearly two billion dollars, the highest value since the first day of trading on Jan. 11.

Bloomberg ETF analyst Eric Balchunas writes the new success mainly to the Bitcoin ETFs from the three major financial firms VanEck, WisdomTree and Bitwise, all of which broke personal records.

The VanEck ETF (HODL) posted impressive volume of $400 million, the WisdomTree Bitcoin Fund (BTCW) $221.9 million and the BitWise ETF (BITB) $178.29 million.

One reason for the significant increase could be that U.S. markets were closed Monday for Presidents Day. As a result, all trades from the extended weekend were executed on the first day of the work week.

Of the three Bitcoin ETFs mentioned, the VanEck product was particularly impressive. The VanEck ETF with the ticker symbol "HODL" saw a nearly 15-fold increase in volume compared to the previous day, according to data from Balchunas.

However, the sudden increase in trading volume in Bitcoin ETFs on VanEck was not due to one large investor. Instead, there were about 32,000 individual orders, which is 60 times the average volume.

Just a few days ago announced VanEck announced a reduction in fees for its HODL ETF from 0.25 percent to 0.20 percent. This makes the VanEck Bitcoin ETF even cheaper than competing products from the two market leaders BlackRock and Fidelity.

According to Dune Analytic VanEck currently has the seventh largest Bitcoin ETF with $187.8 million in assets under management. By comparison, BlackRock and Fidelity each now have BTC worth more than $4 billion with their Bitcoin ETFs.

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