Bitcoin (BTC) exchange-traded funds recorded the highest trading volume since their debut in the US last month.
Volume reached nearly $2 billion, the highest total since the first day of trading on Jan. 11, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted on X.
VanEck's HODL ETF recorded a trading volume of just under $400 million, the WisdomTree Bitcoin Fund (BTCW) recorded a trading volume of $221.9 million, and BitWise's recorded a trading volume of $178.29 million.
Balchunas announced that VanEck's HODL is “in full swing today with volume already at $258 million, a 14x jump above the daily average.”
“And it's not a single large investor (which would make sense), but 32,000 individual trades, which is 60 times the average,” he continued.
It was suggested that the reason for the increase could be that US markets were closed on Monday for President's Day and trading was carried out over the weekend on the first day of the work week.
“Strong Bitcoin ETF inflows from institutional investors suggest risk-on sentiment. Meanwhile, gold ETFs saw a net outflow. The outflow from gold ETFs could be due to increasing demand for U.S. stocks from global investors,” wrote Greta Yuan, head of research at VDX, a regulated exchange in Hong Kong, in an email interview.
Gold ETFs have seen significant outflows since the launch of 10 spot Bitcoin ETFs on January 11, with the two largest Bitcoin ETFs seeing nearly $10 billion in inflows, although this is not necessarily a direct migration of funds from gold to Bitcoin means, CoinDesk previously reported.
“As US stocks continue to rise, led by AI stocks, we will likely see BTC and ETH continue to rise ahead of the Bitcoin halving,” she continued.
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