Bitcoin ETF Trading Spikes to Busiest Session Since January Debut

Bloomberg exchange-traded funds analyst Eric Balchunas noted a particular uptick in volume for HODL and BTCW

AccessTimeIconFeb 21, 2024 at 12:39 a.m. UTC
Updated Mar 27, 2024 at 1:52 a.m. UTC

Bitcoin (BTC) exchange-traded funds posted the most trading since their debut in the U.S. last month.

Volume amounted to nearly $2 billion, the highest total since the first day of trading on Jan. 11, Bloomberg Intelligence senior ETF analyst Eric Balchunas noted on X.

VanEck's HODL ETF posted just under $400 million in volume, WisdomTree Bitcoin Fund (BTCW) saw $221.9 million in trades and BitWise's had $178.29 million.

Balchunas posted that VanEck's HODL "is going wild today with $258 million in volume already, a 14x jump over its daily average."

"And it's not one big investor (which would make sense) but rather 32,000 individual trades, which is 60x its average," he continued.

It has been suggested that the reason for the spike could be that U.S. markets were closed on Monday for Presidents' Day, and trades over the weekend were settled on the first day of the workweek.

As for the price of bitcoin itself, it's changing hands just above $52,200, according to CoinDesk Indicies data, as the U.S. ends its trading day.

“The strong Bitcoin ETF inflow by institutional investors indicates risk-on sentiment. Meanwhile, Gold ETFs have seen a net outflow. The outflow of gold ETFs might be due to global investors’ rising demand for US equity," Greta Yuan, head of research at VDX, a Hong Kong digital assets platform, wrote in an email interview.

Gold ETFs have experienced significant outflows since the launch of 10 spot bitcoin ETFs on Jan. 11, with nearly $10 billion in inflows into the two largest bitcoin ETFs, although this does not necessarily imply a direct migration of funds from gold to bitcoin, CoinDesk previously reported.

"While U.S. equity keeps going higher, led by AI stocks, we will likely see BTC, ETH keep reaching higher ahead of bitcoin halving,” she continued.

CORRECTION (March 27, 2024, 02:48 UTC): Adjusts the description of VDX to reflect that it is not a licensed exchange.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.