Bitcoin ETF trading volume skyrockets to $2 billion

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There’s a big shake-up happening in the cryptocurrency world. The trading volume for US Bitcoin exchange-traded funds (ETFs) is rocketing upward, breaking records and surprising everyone since they hit the market.

Eric Balchunas, a senior expert in ETFs at Bloomberg Intelligence, recently shared some exciting news. The trading volume for Bitcoin ETFs has shot up to nearly $2 billion.

Bitcoin ETFs surge signals investment shift

These ETFs first appeared on the scene on January 11, so to hit this figure this quickly is quite impressive. This spike suggests that investors are more interested and involved in the Bitcoin ETF market than ever before, indicating a significant change in how people invest their money.

Among the different Bitcoin ETFs trading today, the HODL ETF from VanEck is leading the way with a trading volume of nearly $400 million. The WisdomTree Bitcoin Fund (BTCW) and the BitWise ETF are not far behind, showing solid volumes of $221.9 million and $178.29 million, respectively.

What’s caught everyone’s attention is the massive upswing in HODL’s daily trading volume, which soared to $258 million, a 14 times increase. This impressive rise was fueled by around 32,000 individual trades—60 times higher than its daily average.

The boost in trading activity was partly due to US markets being closed for Presidents’ Day. Trades done over the weekend were settled on the first workday, which increased the Bitcoin ETF market volume.

Spot Bitcoin ETFs double investment flow

Recent weeks have seen a remarkable increase in Spot Bitcoin ETFs, with around $2.3 billion pouring in. It is almost double the previous week’s $1.2 billion. These new investments make up nearly half of all the money that’s been put into Bitcoin ETFs since their introduction, now at around $5 billion.

Matteo Greco, a research analyst at the digital asset investment company Fineqia International, links the rising interest in Bitcoin ETFs to Bitcoin’s recent jump in value. The famous cryptocurrency had a boost of about 8% and ended up around the $52,150 mark.

Bitcoin ETFs are soaring high, but traditional Gold ETFs aren’t fairing. As of February 14, the top 14 Gold ETFs in 2024 have seen a loss of $2.4 billion. It may be because global investors are leaning more towards US equity, showing a change in usual investment methods.

Steve Kurz, in charge of Galaxy Asset Management worldwide, predicts that leading financial advising firms, known as wirehouses, will increasingly take part in trading Bitcoin ETFs over the next year. He believes these institutions will not want to miss out on this trend. Some of the biggest online trading and automated advising platforms, like Fidelity, Robinhood, Charles Schwab, and eToro, already offer Bitcoin ETF trading.

The Invesco Galaxy Bitcoin ETF, offered by Galaxy Asset Management, is the sixth-biggest fund in its field, handling $314 million. As the crypto market advances, the leap in Bitcoin ETF trading volume highlights how more people see digital assets as a solid investment choice.

Bitcoin struggles amid economic uncertainty

Recently, Bitcoin’s value has struggled to keep rising. Despite projected to reach a high point at $53,000, it has been pushed down towards a lower value due to market pressures. While everyone’s closely watching Ethereum for the possible green light of Ether ETF’s first spot in the U.S. in March, concerns about the economy are beginning to cloud the general crypto market.

Significant economic events like next month’s upcoming FOMC meeting are making investors nervous. With the world’s financial markets being influenced by big economic changes, crypto traders are primarily focused on the upcoming Bitcoin halving event.

These worries might affect the crypto market, including Bitcoin’s price, for a while.