Goks, VanEck's Bitcoin ETF Trading Volume Reaches IDR 4 Trillion!

JAKARTA - Vaneck's crypto investment product recorded the highest daily trading volume since its launch, reaching 25:8 million or around IDR 4 trillion.

The crypto investment product in the form of exchange-traded funds (ETF) issued by VanEck set a new record on Tuesday, February 20. The daily trading volume of the HODL-coded product jumped to 25:8 million or around IDR 4 trillion, up 14 times from the previous average.

This achievement places VanEck as one of the main players in the crypto ETF market, which was previously dominated by other products such as BlackRock, Fidelity, and Grayscale. These products have already launched crypto ETFs since last month and recorded high daily trading volumes.

What Triggers VanEck's Increase In Trading Volume?

Previously, VanEck's daily trading volume of crypto ETF was only around $25.5 million. Thus, the product lags far behind its competitors, both in terms of volume and flow of incoming funds or net inflow.

However, on Tuesday, there was a fairly surprising phenomenon. VanEck's daily trading volume of crypto ETF soared to 25:8 million, up 14 times its average. This can be seen from the data published by Bloomberg.

Bloomberg senior ETF analyst Eric Balchunas said he was surprised by VanEck's outstanding performance that day. In a tweet on Twitter, he said that the product experienced an extraordinary spike in trading activity, with around 32,000 individual trades, up 60 times its average.

Balchunas is not sure what was behind the spike. He suspects that it may be influenced by online communities such as Reddit or TikTok, which often trigger collective movements among retail investors.

VanEck's Head of ETF Product, Ed Lopez, also admitted that it was difficult to know the exact reasons behind the surge in trading volume, given that the product was traded on the secondary market. However, he considered that trading that day showed a strong volume with a difference in selling and buying prices or low spreads, signaling healthy and liquid market activity.

VanEck Fee Cut Triggers Investor Interest

One of the factors that might contribute to the surge in the trading volume of VanEck's crypto ETF is the cutting of costs by the company. Last week, VanEck announced that it would lower the annual cost or expansion ratio of the product from 0.25% to 0.20% starting February 21.

According to Lopez, the decision to lower HODL costs has increased retail investors' interest and involvement in the product. At a cost of 0.20%, VanEck products are cheaper than their competing products, such as BlackRock and Fidelity, which still charge 0.25%.