Bitcoin ETF Trading Volume Reaches All-Time High
Bitcoin exchange-traded funds (ETFs) in the United States have experienced a significant surge in trading volume, reaching their highest levels since their launch last month. According to Bloomberg Intelligence analyst Eric Balchunas, the trading volume amounted to nearly $2 billion, marking the highest level since the first day of trading. Among the leading Bitcoin ETFs, VanEckโs HODL ETF recorded just under $400 million in trading volume, while WisdomTree Bitcoin Fund (BTCW) saw $221.9 million and BitWiseโs ETF had $178.29 million. VanEckโs HODL ETF was particularly active, with $258 million in volume, representing a 14-fold increase over its daily average. The spike in volume can be attributed in part to the closure of U.S. markets on Presidentsโ Day.
Gold ETFs Experience Outflows as Bitcoin ETFs Gain Traction
Meanwhile, there has been a net outflow from Gold ETFs, potentially driven by global investorsโ growing demand for U.S. equity. So far this year, the leading 14 Gold ETFs have experienced outflows of $2.4 billion as of February 14. Among the gold ETFs, only three have seen minor inflows this year: VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF, and Proshares UltraShort Gold. Galaxy Asset Managementโs global head Steve Kurz expects top wirehouses to increase their involvement in spot Bitcoin ETFs within the next year. Several online brokerage and robo-advisor platforms currently facilitate the trading of spot Bitcoin ETFs.
Hot Take: Increasing Demand for Bitcoin ETFs Impacts Market
The surge in trading volume for Bitcoin ETFs reflects the growing demand for these investment vehicles. As Bitcoin ETFs gain traction, the price of Bitcoin itself remains steady, trading just above $52,200. The influx of funds into BTC ETFs has contributed to Bitcoinโs recent surge, with the leading cryptocurrency gaining around 8%. In contrast, Gold ETFs have experienced outflows as investors shift their focus to U.S. equity. The future looks promising for spot Bitcoin ETFs, with industry experts predicting increased involvement from wirehouses and institutional investors.
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