VanEck Bitcoin spot ETF volume up 4,400% in a single day – What’s the cause of this sudden growth ?
Record for VanEck’s Bitcoin spot ETF
On Tuesday, February 20, 2024, the VanEck Bitcoin Spot ETF, known as HODL, saw a remarkable 4,400% increase in trading volume over its average daily volume.
Since its inception, the VanEck proposed Bitcoin Spot ETF has accumulated a total volume of almost $232 million, with an average daily trading volume of $9 million.
Yesterday, this ETF reached a new high, surpassing the $400 million volume threshold in a single day, far exceeding expectations and putting the asset manager in the spotlight.
While this progress is remarkable, VanEck’s ETF only ranks 7th among spot Bitcoin ETFs in terms of assets under management (AUM), with less than $190 million in its reserves.
Grayscale’s GBTC leads the market with assets under management (AUM) of $23.6 billion, followed by BlackRock’s IBIT with $5.7 billion and Fidelity’s FBTC with $4.25 billion.
Why is VanEck’s ETF growing so fast ?
The reasons behind the record volume of VanEck’s Bitcoin ETF are unclear.
According to Bloomberg analyst Eric Balchunas, the record was not achieved by a trade by an institutional investor, but by 32,000 trades by individual investors.
However, this reasoning seems inadequate to explain the sudden increase in volume of this ETF compared to others.
Indeed, even though VanEck’s new management fee rate is significantly low, they still align their fees with Bitwise’s BITB and remain higher than Franklin Templeton’s EZBC, which offers fees of just 0.19%.
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