Less than a week after VanEck filed a notice saying it would be lowering the fee it charges on its spot bitcoin ETF, the investment manager’s fund experience a massive spike in trading volume.
On Tuesday, VanEck’s spot bitcoin ETF surpassed $300 million in trading volume as of 1:50 p.m. ET, more than ten times what it traded on its best day so far. When VanEck’s crypto-based ETF launched on January 11 it hit its previous high of daily trading volume when it registered $25.5 million, according to Yahoo Finance data compiled by The Block.
Bloomberg senior ETF analyst Eric Balchunas took to X to express his surprise for how well the fund was performing. VanEck’s ETF “is going wild today with $258 million in volume already, a 14x jump over its daily average, ” he posted. “And it’s not one big investor (which would make sense) but rather 32,000 individual trades, which is 60x its average.”
VanEck’s ETF has struggled to keep pace with the products offered by BlackRock, Fidelity and Grayscale, which have dominated in terms of daily trading volumes since the new financial instruments launched last month. Both BlackRock and Fidelity charge a fee of 0.25% on their offerings, though the fees are partially waived for early investors. Last week, in a sign it potentially hoped to compete on price, VanEck filed a notice with the Securities and Exchange Commission announcing it would lower its fee to 0.20% from 0.25%, effective on Feburary 21, or tomorrow.
The U.S.-based investment manager VanEck did not immediately respond to a request for comment.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
This news is republished from another source. You can check the original article here