VanEck’s Bitcoin ETF Sees Unprecedented Trading Surge Amid Fee Reduction
Summary:
VanEck's Bitcoin spot Exchange-Traded Fund (ETF), symbolized "HODL", experienced an unanticipated surge in trading volume to $258 million on February 20. The rise, which marked a nearly 15 times increase from the previous day, is speculated to be due to about 32,000 individual transactions rather than one significant investment. On the same day, WisdomTree's Bitcoin Fund (WBTC) also witnessed a significant volume increase to $154 million. The surge occurred amidst the plans of VanEck to reduce its ETF fees from 0.25% to 0.20%, beginning February 21.
VanEck's Bitcoin (BTC) spot Exchange-Traded Fund (ETF), symbolized "HODL", has seen a sudden and dramatic surge in trading volume, which has sparked curiosity among market observers. On February 20, the fund's trading volume spiked to $258 million, marking a nearly 15-fold jump from the day prior, as Eric Balchunas, a senior Bloomberg ETF analyst, pointed out. The fund saw approximately 32,000 individual trades on this day, rather than a significant investment from a single investor. Balchunas speculated that the surge could be attributed to the fund being recommended by a popular influencer on social media platforms such as Reddit or TikTok.
Earlier, on February 15, VanEck had submitted a notification to the United States Securities and Exchange Commission (SEC), indicating its plans to lower its ETF fees from 0.25% to 0.20%, starting February 21 – a fee rate that is five basis points less than those of market frontrunners like BlackRock and Fidelity.
Furthermore, another Bitcoin Fund, WisdomTree's (WBTC), saw an unprecedented volume increase of around 1,200% to $154 million on February 20 according to data referred by Balchunas. WBTC registered 23,000 individual transactions on this day, a significant jump from merely 221 deals that took place on the previous Friday.
As of now, VanEck's Bitcoin Trust ranks as the seventh-largest spot Bitcoin ETF with $191.9 million in assets under management (AUM), while WisdomTree's fund is the smallest, managing just $29.4 million, according to data from Dune Analytics.
Published At
2/21/2024 3:34:47 AM
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