By
Chimamanda U. Martha
April 26th, 2024
The VanEck spot Bitcoin ETF (HODL) trading volumes spiked by 2,200% on Tuesday as it intends to lower its offering fees from 0.25% to 0.20%, as per regulatory filings.
The Bitcoin ETFs continue to hit new milestones every passing day ever since their launch in January. On February 20, the combined trading volume of all nine Bitcoin ETFs stood the highest at $2 billion, as reported by Bloomberg’s senior ETF strategist Eric Balchunas.
Of the nine, three spot Bitcoin ETFs – BITB, HODL, and BTCW – recorded new highs in terms of trading volumes. Balchunas also noted that the $2 billion in trading volumes puts Bitcoin ETFs among the top ten ETFs as well as the top twenty stocks in terms of trading activity.
The Nine had biggest volume day since Day One with about $2b in combined trading thx to big contributions from $HODL, $BTCW and $BITB which all broke their personal records. For context $2b in trading would put them in Top 10ish among ETFs and Top 20ish among stocks. It's a lot. pic.twitter.com/547pIl5grI
— Eric Balchunas (@EricBalchunas) February 20, 2024
Interestingly, the data provided by the Bloomberg strategist differs from that provided by Santiment, by a huge margin. Santiment reported that Bitcoin ETFs experienced unprecedented daily trading volumes and inflows, potentially bolstered by the closure of markets on Presidents Day. The seven largest ETFs collectively recorded a remarkable $6.94 billion in trading volume.
On the other hand, Bitcoin ETF inflows have also slowed down following a massive surge last week. On Tuesday, February 20, the net inflows stood at $135 million, 50% down from the previous day. BlackRock’s iShares Bitcoin ETF registered $150 million followed by Fidelity’s $71 million. On the other hand, the Grayscale Bitcoin Trust (GBTC) recorded the net outflows at $137 million.
Yesterday's ETF inflows.
Monday was a bank holiday so no trading then. Yesterday we had $135 million net inflow. With $137 million outlfow from GBTC. A pretty good day.Price seems to be stagnant in this range between $50.7k-53k but the more Bitcoin that gets taken off the… pic.twitter.com/0Kmjkk4CtT
— WhalePanda (@WhalePanda) February 21, 2024
As per data from Coinglass, the collective assets under management of Bitcoin ETFs have surged to a staggering $37.217 billion. The leading Bitcoin ETFs by assets under management are as follows:
- GBTC: It holds assets under management totaling $23.567 billion.
- IBIT: This ETF manages assets worth $5.68 billion.
- FBTC: It has assets under management amounting to $4.25 billion
VanEck Bitcoin ETF Trading Volume Jumps by 2,200%
On Tuesday, trading volumes of VanEck’s HODL Bitcoin ETF, skyrocketed by over 2,200%, driven mainly by individual traders.
HODL witnessed a remarkable surge, trading over $400 million in volumes, marking a substantial increase from its average daily volume of $17 million. This surge came just before a planned fee reduction scheduled for Wednesday, where VanEck intends to lower its offering fees from 0.25% to 0.20%, as per regulatory filings.
Despite its usual leaders being Grayscale’s GBTC and BlackRock’s IBIT, HODL’s volumes managed to secure the third-largest position. As of February 20, data reveals that the ETF now holds nearly $200 million worth of Bitcoins.
Eric Balchunas, an analyst at Bloomberg Intelligence, remarked on X that the trading volumes originated from 32,000 individual transactions rather than a single large investor, indicating indications of a retail frenzy.
“Given how sudden and explosive the increase in the number of trades was (500 trades Friday, 50,000 trades today), I’m wondering if some Reddit or TikTok influencer type recommended them to their followers. Feels retail army-ish,” added Balchunas.
