VanEck’s Bitcoin ETF Daily Trading Volume Rises 1,400%

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The spot Bitcoin ETF offered by VanEck has experienced an unexpected surge in trading volume, leading analysts to search for the cause.

On February 20, VanEck’s “HODL” fund saw a trading volume of $258 million, a huge increase from the previous day’s volume, according to senior Bloomberg ETF analyst Eric Balchunas.

The spike in volume can be attributed to around 32,000 individual trades, which is 60 times more than the average, rather than a large trade from a single investor, which would have been more expected.

Balchunas noted that he has not been able to determine the reason for the sudden increase in volume, even after five hours. He speculates that the increase in trades could have been influenced by a popular social media figure recommending the ETF to their followers.

This could explain the surge in volume, which was 500 trades on Friday and 50,000 trades on the day of the sudden increase.