The Growth of Coinbase International Exchange and the Surge in Volume for Bitcoin ETFs
Coinbase International Exchange, based in Bermuda, has reached a milestone by hitting $1 billion in daily volume for the first time. The exchange offers crypto perpetual futures trading to professional non-US traders. CEO Brian Armstrong expressed his desire to see perpetual futures allowed in the US market as well. In addition, Bloomberg senior ETF analyst Eric Balchunas reported that nine new Bitcoin ETFs had a record-breaking trading day with about $2 billion in combined volume. VanEck’s Bitcoin Trust (HODL), WisdomTree Bitcoin Fund (BTCW), and Bitwise Bitcoin ETF (BITB) also achieved new daily volume records.
The Mystery Behind VanEck’s Volume Surge
Eric Balchunas was puzzled by the sudden increase in trading volume for VanEck’s HODL fund, which went from 500 trades on Friday to 50,000 trades. He speculated that it could be due to recommendations from Reddit or TikTok influencers, describing it as a “retail army-ish” phenomenon. Despite the surge in volume, the inflow of funds into the HODL fund did not match the trading activity. Jan van Eck, the CEO of VanEck, welcomed new investors and celebrated the over $399 million traded for their Bitcoin ETF.
Hot Take: The Future of Crypto Trading
The growth of Coinbase International Exchange and the surge in volume for Bitcoin ETFs indicate a growing interest and demand for cryptocurrency trading. As more exchanges and investment vehicles emerge, it is crucial for regulators to adapt and create a conducive environment for innovation and investor protection. The success of Coinbase International Exchange outside of the US highlights the need for regulatory clarity within the country to prevent businesses from seeking more favorable jurisdictions. The retail-driven trading activity for VanEck’s HODL fund also demonstrates the power of social media influencers in driving market trends. As the crypto market evolves, it is essential for investors to stay informed and make educated decisions.
By
By
By
By
By