VanEck’s Spot Bitcoin ETF Sees Massive Spike in Trading Volume
In a surprising turn of events, VanEck’s spot bitcoin ETF experienced a significant surge in trading volume, less than a week after the investment manager announced a fee reduction. As of 1:50 p.m. ET on Tuesday, the ETF had surpassed $300 million in trading volume, a remarkable feat considering it had previously achieved a daily high of $25.5 million since its launch on January 11.
Bloomberg senior ETF analyst Eric Balchunas noted that VanEck’s ETF had “gone wild” with $258 million in trading volume, a staggering 14-fold increase compared to its daily average. What’s even more noteworthy is the fact that this surge wasn’t driven by a single large investor, but rather 32,000 individual trades, a remarkable 60-fold increase from the norm.
VanEck’s head of ETF product, Ed Lopez, expressed his satisfaction with the trading activity, stating, “Today’s trading has sported great volume at tight spreads, which is ultimately what you’d want from an ETF, whether you’re bullish or bearish on the market.” The surge in trading volume indicates strong market interest and engagement from retail investors, according to Lopez.
However, VanEck’s ETF has faced tough competition from BlackRock, Fidelity, and Grayscale, who have dominated the daily trading volumes since the introduction of these financial instruments last month. Both BlackRock and Fidelity charge a fee of 0.25% on their offerings, with partial waivers for early investors. In response, VanEck recently filed a notice to lower its fee from 0.25% to 0.20%, effective from February 21.
“We’ve publicly filed to lower HODL’s fee, and we have seen strong interest in our fund … including great engagement from retail investors,” said Lopez, highlighting the positive response from the market.
VanEck’s spot bitcoin ETF’s impressive surge in trading volume showcases the growing popularity and demand for cryptocurrency investment products. With the fee reduction, the investment manager aims to level the playing field and attract more investors to its offering. As the crypto market continues to evolve, it will be interesting to see how these ETFs perform and capture investor attention.
Analyst comment
Positive news.
As an analyst, the surge in trading volume for VanEck’s spot bitcoin ETF indicates strong market interest and engagement from retail investors. With the fee reduction, the market is likely to see an increase in investors and continued growth in the popularity and demand for cryptocurrency investment products. It will be crucial to monitor the performance of these ETFs as the crypto market evolves.
