Crypto News– On Tuesday, the VanEck Bitcoin exchange-traded fund (ETF) saw an unexpected surge, with its daily trading volume surpassing $258 million, marking a remarkable 14-fold increase in just one day.
VanEck Bitcoin ETF’s Status: Surge in Trading Volume Indicates Significant Activity
Despite this notable achievement, VanEck’s ETF has struggled to match the trading volumes seen in other ETFs like BlackRock, Fidelity, and Grayscale, which have dominated daily trading volumes since their launch last month. Prior to this surge, VanEck’s crypto-based ETF had its highest daily trading volume at $25.5 million. Consequently, it fell behind competitors such as BlackRock, Fidelity, and Grayscale in both volume and net flows.
Eric Balchunas, Bloomberg’s senior ETF analyst, expressed surprise at VanEck’s exceptional performance in a recent post on X. He highlighted the significant increase in trading activity, with daily volume reaching $258 million, a fourteen-fold jump from its usual average.
Balchunas noted that this surge wasn’t fueled by a single large investor but rather by approximately 32,000 individual trades, representing a sixty-fold increase from its typical levels.
VanEck’s Fee Reduction Sparks Investor Interest
Last week, VanEck filed a notice with the Securities and Exchange Commission that it would be reducing its fee from 0.25% to 0.20% on February 21. According to Lopez, the decision to lower the HODL’s fee has increased the interest in the fund and brought more engagement from retail investors. BlackRock and Fidelity charge a fee of 0.25%. Meanwhile, there has been a notable surge in trading volumes for WisdomTree’s Bitcoin Fund (WBTC), with the total daily volume reaching $154 million on February 20, an approximately 1,200% increase from the average volume. On the same day, WBTC witnessed 23,000 individual trades, a substantial rise compared to a mere 221 trades on the previous Friday.
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