VanEck’s Bitcoin ETF Witnesses 1,000% Surge in Daily Volume Amid Fee Cut Speculation

VanEck’s Bitcoin ETF Witnesses 1,000% Surge in Daily Volume Amid Fee Cut Speculation

Ahead of its planned fee reduction, VanEck’s spot Bitcoin ETF experienced an extraordinary surge, with trading volume skyrocketing to 14 times its daily average.

On February 20, the VanEck Bitcoin Trust ETF (HODL) saw trading volume surpassing $258 million, involving approximately 32,000 individual traders. This surge in activity caught the attention of market analysts, with Bloomberg’s Eric Balchunas highlighting the remarkable increase in volume and trader participation compared to the ETF’s usual numbers.

Eric Balchunas remarked on X, stating, “I’ve never seen a grassroots trading explosion come out of nowhere like this.”

The surge in volume marks a significant spike from VanEck’s previous high of around $25 million recorded on January 11, the first day of spot Bitcoin ETF trading in the United States. Despite being outpaced in volume and net flows by competitors like BlackRock, Fidelity, and Grayscale, VanEck is taking steps to remain competitive by reducing its fees.

In an effort to attract more investors, VanEck announced a fee reduction from 0.25% to 0.2%, set to take effect on February 21. This fee adjustment positions VanEck’s offering with lower fees compared to the spot BTC ETF leader, BlackRock, which charges 0.25%, along with Fidelity.

Additionally, VanEck made strategic moves to consolidate its resources around its latest crypto-based offering by liquidating its Bitcoin futures ETF. Moreover, the company has committed to allocating 5% of its HODL ETF profits to support Bitcoin core developers, demonstrating a commitment to the broader cryptocurrency ecosystem.

Similar strategies were implemented with VanEck’s Ethereum futures ETF, where the issuer pledged 10% of its profits to the Ethereum Protocol Guild for the next decade. Furthermore, VanEck has a pending spot Ethereum ETF filing with the U.S. Securities and Exchange Commission (SEC), indicating its continued interest in expanding its cryptocurrency ETF offerings.

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