Bitcoin ETFs have their busiest day since launch with an explosion in volume

The new Bitcoin (BTC) exchange-traded funds (ETFs) or exchange traded funds in the United States continue to perform impressively.

Yesterday, smaller Bitcoin ETFs also saw a huge surge in volume, making February 20 the busiest Bitcoin ETF day since its launch.

The busiest Bitcoin ETF day since its launch

The new Bitcoin ETFs experienced a total Volume of almost 2 billion US dollars on February 20th. This is the highest volume since the new funds were first launched on January 11th.

This is due to the fact that three Bitcoin ETFs, which had been relatively underperforming, saw a significant increase in volume yesterday.

For example, the VanEck Bitcoin Trust (HODL) reached a volume of almost $400 million on February 20th. reports CEO Jan van Eck. This is an increase of more than 2,000% compared to the average fund size.

The WisdomTree Bitcoin Fund (BTCW) also recorded an impressive volume of $222 million yesterday. The Bitwise Bitcoin Fund (BITB) reached a volume of $178 million. These are new records for all three funds.

Bloomberg ETF expert Erich Balchunas points out that no major investor is responsible for the extreme increase in volume.

That would have been logical, said the analyst. Yesterday, however, no fewer than 32,000 individual transactions took place, 60 times more than average.

Possible explanations for the enormous increase in volume

It is speculated that the increase in volume could have two causes. First, US financial markets were closed last Monday.

On February 19, the United States celebrated Presidents’ Day, a holiday honoring George Washington, the country’s first president

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This means that transactions that took place over the weekend were not processed until the first day of the working week, which was yesterday, February 20th.

Another explanation could be that VanEck recently announced that it would reduce fees on its ETF from 0.25% to 0.20% starting February 21st. That’s 0.05% less than its two biggest competitors, BlackRock and Fidelity.

Nevertheless, the enormous increase remains one puzzle in the eyes of Balchunas:

“I still haven’t figured out what happened. Nobody knows. Given the sudden and explosive increase in trades (500 trades on Friday, 50,000 trades today), I wonder if a Reddit or TikTok influencer recommended them to their followers. It feels like a retail army.”

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