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VanEck's Bitcoin ETF explodes 2200%! BlackRock in panic!

Wed 21 Feb 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Crypto regulation

The crypto market witnessed another frenzy this Tuesday, as trading volumes of the VanEck Bitcoin ETF (HODL) surged by more than 2200% in a single day. Propelling HODL to the third most traded ETF behind Grayscale’s GBTC and BlackRock’s IBIT. 

Bitcoin Crypto ETF

A Massive Influx of Retail Traders Triggers a Volume Explosion

According to data, HODL traded over $400 million in volume on Tuesday, which is 22 times its usual average daily volume of $17 million. This sudden surge seems to have been fueled by an army of small retail traders, rather than a large institutional investor.

While the exact source remains unknown, it seems that a popular crypto influencer might have highlighted HODL to their fan base, thereby triggering a rush to the Bitcoin ETF. This wouldn’t be the first time such a buying frenzy has been set off on social media.

VanEck’s Fee Reduction Spurs Trader Interest 

This massive influx of volume comes just before VanEck is set to reduce its fees on HODL, moving from 0.25% to 0.20% starting this Wednesday. This cost reduction likely enhanced retail traders’ interest in the Bitcoin ETF.

The combination of a viral recommendation and a fee reduction seems to have created the perfect storm to trigger a buying frenzy. Small crypto traders rushed to purchase HODL shares before the reduced fees came into effect.

This surge in volume has propelled Bitcoin ETFs as a whole to their highest daily transaction level since their launch in January. 

 The Excitement for Bitcoin Is Back

This episode is eerily reminiscent of the 2017 bull run frenzy, where Bitcoin hit its all-time high of nearly $20,000. Although prices are currently far from those peaks, the speculative enthusiasm around Bitcoin seems to be back.

If this explosive interest in Bitcoin ETFs continues, it could signal the beginning of a new bullish run. Increasingly more individual investors are drawn to the rapid wealth potential of this cryptocurrency.

It remains to be seen if this sudden spike in volumes on HODL is just an isolated flash in the pan, or a precursor sign of mass adoption of Bitcoin. For now, the crypto market is holding its breath.

This mysterious surge in volumes on the VanEck Bitcoin ETF illustrates just how sensitive the Bitcoin market remains to speculation and crowd effects. Is a viral recommendation and a fee reduction enough to trigger a crypto buying frenzy?

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Eddy S. avatar
Eddy S.

Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.