đź“° Table Of Contents
Bitcoin ETFs in the United States Witness Surge in Trading Volume
Bitcoin (BTC) exchange-traded funds (ETFs) in the United States have recently experienced a significant increase in trading volume, reaching the highest levels since their debut last month.
Highest Trading Volume Recorded
The trading volume for Bitcoin ETFs in the United States reached nearly $2 billion, marking the highest level of activity since the first day of trading on January 11. Among the leading Bitcoin ETFs, VanEck’s HODL ETF recorded just under $400 million in trading volume, while WisdomTree Bitcoin Fund (BTCW) saw $221.9 million and BitWise’s ETF had $178.29 million.
Increase in Daily Volume
Senior ETF analyst Eric Balchunas noted that VanEck’s HODL ETF experienced a particularly significant increase, with $258 million in volume, representing a 14-fold increase over its daily average. The surge in volume was driven by 32,000 individual trades, which is 60 times higher than its average.
Factors Contributing to Volume Spike
The spike in trading volume can be partially attributed to the closure of U.S. markets on Monday for Presidents’ Day. Trades conducted over the weekend were settled on the first day of the workweek, contributing to the increased volume.
Bitcoin’s Current Price
While Bitcoin ETFs continue to gain momentum, the price of Bitcoin itself is currently trading just above $52,200, as the U.S. trading day concludes.
Growing Demand for BTC ETFs
According to research analyst Matteo Greco, the growing demand for BTC ETFs has fueled Bitcoin’s surge, which saw the leading cryptocurrency gain around 8% to close at approximately $52,150 last week. This surge in demand has contributed to substantial inflows into Bitcoin ETFs.
Trend in Gold ETFs
On the other hand, there has been a net outflow from Gold ETFs, possibly driven by global investors’ growing demand for U.S. equity. As of February 14, the leading 14 Gold ETFs have experienced outflows of $2.4 billion in 2024.
Institutional Interest in Spot Bitcoin ETFs
Galaxy Asset Management’s global head, Steve Kurz, expects top wirehouses to increase their involvement in spot Bitcoin ETFs within the next year. He anticipates institutional FOMO and a rise in interest from financial advisers in spot Bitcoin ETFs. Several online brokerage and robo-advisor platforms currently facilitate the trading of spot Bitcoin ETFs.