The value of the daily volume of HODL reportedly skyrocketed over 1,000% on Tuesday. This happened a day before VanEck was scheduled to lower the fees on its Spot Bitcoin ETF. The current fee is 0.25%, coming down to 0.20% effective February 21, 2024. Also, the daily trade volume skyrocketed in less than a week since the fund manager filed an application with the US Securities and Exchange Commission.
Although it is difficult to determine who drove the surge, analysts have said that there were almost 32,000 individual trades behind the volume spike. The daily volume for the Spot Bitcoin ETF of VanEck is the highest for the fund manager to date. Its earlier peak was $25.5 million, two days after the Commission approved eleven ETF applications and one day after VanEck launched its Bitcoin product.
Eric Balchunas, a senior ETF analyst with Bloomberg, took to X to address the huge surge. Eric said that the market was going wild with $258 million in volume, adding that it was a 14-times jump over its daily average.
Ed Lopez, the Head of ETF Product at VanEck, said that the trading sported great volume at tight spreads, adding that that is precisely what one would want to happen irrespective of the sentiments that prevail in the market—bullish or bearish. Lopez further said that they decided to lower the fees and file with the Commission because they observed a strong interest in their fund, which is HODL. It also includes great engagement from retail investors.
BlackRock and Fidelity continue to dominate the market for Bitcoin ETFs, along with Grayscale. BlackRock and Fidelity apply a fee of 0.25%, with no hint of bringing it down in the coming days. What remains to be seen is if VanEck slashing the fees will hamper their growth and work well for the company or if it carries forward the ongoing momentum, which could be strongly based on brands.
The update comes at a time when BTC is back to a value of less than $52,000. It is currently exchanging hands at $51,172.44, with a slip of 1.18% in the last 24 hours. It further reflects a fall of 0.68% and a rise of 22.625 in the last seven days and 30 days, respectively. The 24-hour volume has an uptick of 45.89%.
As for the rising interest in Spot Bitcoin ETF, it has enabled the crypto funds to bag $2.5 billion in a weekly inflow, as per reports on February 19, 2024. AUM is also reportedly back to the levels of December 2021.
South Korea is one region that is considering introducing a Spot Bitcoin ETF. The People Power Party, IEOs, and institutional crypto investment may take moves to lift the product’s restriction. Most importantly, the political party is looking for a means to include Spot Bitcoin ETF in its campaign.