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The daily trading volume of Bitcoin exchange-traded funds (ETFs) has surged to $2 billion, the highest since day one.

 

The daily trading volume of


Bitcoin exchange-traded funds (ETFs)


has surged to $2 billion, the highest since day one.


Bitcoin ETFs traded on U.S. exchanges have experienced a significant increase in

trading volume, reaching their highest levels since their emergence last month.


According to Bloomberg ETF analyst Eric Balchunas, the trading volume has

approached $2 billion, the highest level since the first day of trading on January 11.


VanEck's "HODL"

investment fund has witnessed a 14-fold increase in daily trading volume.

Leading Bitcoin-focused investment funds have recorded significant trading

volumes :

  1. with the VanEck HODL ETF
  2. recording trades of
  3. approximately $400 million.


Additionally :

the WisdomTree Bitcoin Fund (BTCW) saw trades worth $221.9

million, and the BitWise ETF saw trades worth $178.29 million.


Balchunas noted that the VanEck HODL ETF was particularly active, with trading

valued at $258 million, representing a 14-fold increase over its daily average.


It is worth noting that :

this significant increase in trading volume was the result of executing 32,000

individual trades, equivalent to a 60-fold increase over the average.


Partially :

the increase in trading volume can be attributed to the closure of U.S. markets on

Monday for Presidents' Day. Trades conducted over the weekend were settled on

the first working day of the week, contributing to the increase in trading volume.


As Bitcoin-focused exchange traded

  • funds continue to gain momentum
  • the price of Bitcoin itself is currently
  • trading around $52,200 at the close of the U.S. trading day.


As mentioned earlier :

Bitcoin ETFs saw a significant inflow of around $2.3 billion

last week :

compared to approximately $1.2 billion in the previous week.


These incoming flows have roughly surpassed half of the total since

the inception of Bitcoin investment funds, currently valued at around $5 billion.


According to Matthew Greco

research analyst at digital asset investment firm Fineqia International

the increasing demand for Bitcoin ETFs boosted Bitcoin's momentum last week

with the leading currency rising by approximately 8% to close at around $52,150.


Gold-focused investment funds

are negatively affected as Bitcoin-focused investment funds take the lead.

Meanwhile

there is a net outflow from gold-focused investment funds, possibly due to

increased demand from global investors for U.S. stocks.


So far this year, the top 14 gold-focused exchange-traded funds

have seen a low net inflow of $2.4 billion until February 14, 2024.


Among gold funds

only three have seen slight net inflows this year:

VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF

and Proshares UltraShort Gold.


In the nearer term

Steve Kurz, global asset CEO at Galaxy Asset Management, expects large financial

brokerage firms to increase their participation in instant

Bitcoin funds over the next year.


He told FOX Business on

February 19 during the Exchange ETF conference in Miami Beach

Florida:

"I would be surprised in the next year if 10 large brokerage firms

don't participate in this... maybe we'll see institutional FOMO."


This statement comes as companies offering instant Bitcoin funds

receive inquiries from financial advisors during the event.

Currently :

several online brokerage platforms and robo-investor platforms, such as Fidelity

Robinhood :

Charles Schwab, and eToro, offer instant Bitcoin fund trading.


Galaxy Asset Management offers the Invesco Galaxy Bitcoin ETF (BTCO) fund

which is the sixth-largest fund of its kind, managing $314 million in assets.


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