VanEck’s Bitcoin ETF Records 1,400% Surge in Daily Trading Volume

VanEck and WisdomTree's Bitcoin ETFs experienced unexpected and substantial increases in trading volume, leaving analysts puzzled about the underlying cause.

Vaneck’s Bitcoin Etf Records 1,400% Surge In Daily Trading Volume_65d5d1c8ead53.webp

VanEck’s spot Bitcoin exchange-traded fund (ETF), tagged with the symbol “HODL,” witnessed a significant surge in trading volume on February 20, soaring nearly 15 times compared to the previous day. The uptick, totaling $258 million, was fueled by approximately 32,000 individual trades, a staggering 60 times its usual average, rather than a substantial investment from a single large player, as one might expect.

Despite efforts to discern the cause, senior Bloomberg ETF analyst Eric Balchunas remains perplexed, stating, “Still haven’t figured out what happened.” In a subsequent post, he speculated on the possibility of a Reddit or TikTok influencer recommending the ETF to their followers, considering the abrupt and explosive spike in trade numbers (500 trades on Friday, 50,000 trades today), giving it a retail-driven vibe.

Adding to the intrigue, on February 15, VanEck submitted a notice to the United States Securities and Exchange Commission, announcing a reduction in fees for its ETF from 0.25% to 0.20%, effective February 21. This adjustment positions VanEck’s fees 5 basis points below those charged by market leaders BlackRock and Fidelity.

BlackRock, the prominent fund issuer, committed to waiving fees on its iShares fund until it reached $5 billion in assets under management (AUM). Following the achievement of this milestone on Feb. 15, BlackRock has implemented a 0.25% fee on all new investments into its fund.

Related: BlackRock Unveils Bitcoin ETF Ad with a Focus on Advisor Appeal

Simultaneously, trading volumes for WisdomTree’s Bitcoin Fund (WBTC) experienced a notable surge, with a staggering approximately 1,200% increase from its average, reaching a total daily volume of $154 million on Feb. 20, according to Bloomberg data highlighted by Balchunas. The WBTC observed 23,000 individual trades on Feb. 20, marking a significant rise from a mere 221 trades on the preceding Friday.

The heightened trading activity in both the HODL and WBTC funds coincided with a period of “elevated but not crazy” volume on leading funds, including BlackRock’s iShares Bitcoin ETF.

VanEck’s Bitcoin Trust presently holds the position as the seventh-largest spot Bitcoin ETF, managing $191.9 million in AUM, while WisdomTree’s fund is the smallest, with just $29.4 million in AUM, as per data from Dune Analytics.

(100 votes)

5.0/5

(100 votes)

Latest

Bitcoin Boom Ahead Institutional And Derivatives Data Reveal

News | Bitcoin | Editor Choice

Bitcoin Boom Ahead? Institutional and Derivatives Data Reveal

Market experts believe that Bitcoin (BTC) is in a phase of accumulation rather than topping, predicting a retest before the next explosive breakout.

Bitcoin Cools Off After Record Breaking Rally

News | Bitcoin | Editor Choice

Bitcoin Cools Off After Record-Breaking Rally

After a series of record-breaking gains, Bitcoin suddenly slipped more than 2% on Tuesday afternoon as a wave of profit-taking spread and investor caution returned to the crypto market.

Bitcoin Breaks Weekly Inflow Record With $3.55 Billion Surge

News | Bitcoin | Editor Choice

Bitcoin Breaks Weekly Inflow Record with $3.55 Billion Surge

Last week, Bitcoin recorded a historic $3.55 billion in investment inflows, even as its price approached all-time highs and investors largely avoided short products. Across the broader digital asset market, total inflows reached $5.95 billion — the largest weekly figure ever recorded, according to CoinShares.

Bitcoin Hits A New Ath As Profit Margins Continue To Shrink

News | Bitcoin | Editor Choice

Bitcoin Hits a New ATH as Profit Margins Continue to Shrink

Although Bitcoin (BTC) continues to set new price records after every halving, historical data shows that the world’s largest cryptocurrency is experiencing diminishing returns with each new cycle.

Factors Driving Bitcoin’s Strong Rally In ‘uptober’

News | Bitcoin | Editor Choice

Factors Driving Bitcoin’s Strong Rally in ‘Uptober’

Bitcoin enters October with hopes of reviving “Uptober,” as markets bet on an upcoming Fed rate cut and a renewed appetite for risk assets.

Screenshot 2025 09 10 100533