Bitcoin ETF trading hits record high since launch

Bitcoin ETF trading hits record high since launchBitcoin ETFs witness a surge in trading volume; VanEck's HODL leads the charge with $258 million

By Shashank Bhardwaj

Published: Feb 21, 2024 04:13:38 PM IST

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Bitcoin exchange-traded funds (ETFs) saw a surge in trading activity, marking their busiest session since their US debut in January. The volume soared close to $2 billion, a milestone not witnessed since the initial trading day on January 11, 2024.

Analysts speculate that the spike in trading could be attributed to the closure of US markets on Monday for Presidents' Day, with weekend trades being settled on the first working day of the week.

VanEck's HODL ETF led the charge with nearly $400 million in trading volume, closely trailed by WisdomTree Bitcoin Fund (BTCW) at $221.9 million and BitWise at $178.29 million.

VanEck's HODL saw a 14x surge in volume compared to its daily average, driven by 32,000 individual trades, marking a 60x increase over its typical trading activity.

Meanwhile, Bitcoin itself was exchanging hands just above $52,200, concluding the US trading day.

Greta Yuan, head of research at VDX, a regulated Hong Kong exchange, highlighted the influx of institutional investors into Bitcoin ETFs, signifying a prevailing risk-on sentiment. She noted a contrasting trend, with gold ETFs experiencing significant outflows since the launch of bitcoin ETFs. However, Yuan cautioned against interpreting this as a direct shift from gold to bitcoin.

Yuan further commented on the positive momentum of Bitcoin and Ethereum, foreseeing continued upward trajectories, particularly ahead of the Bitcoin halving event.

The surge in Bitcoin ETF trading underscores the growing institutional interest in cryptocurrency as a viable investment avenue, potentially reshaping traditional investment portfolios amidst evolving market dynamics.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.

Twitter: @bhardwajshash