High-frequency Trading May Be Behind Spot Bitcoin ETF Volume Rise: Report

Last week, the spot Bitcoin ETF from VanEck saw a significant increase in daily activity, reaching over $400 million in trading volume.

This was a surprising jump of more than 1,400% compared to the ETF’s second most active day. The ETF, called HODL, had previously been reporting daily trading volumes of less than $10 million, with its launch day being its highest at $25.5 million.

However, for the entire week, there was only a net inflow of $17 million according to CoinShares, leaving many wondering what caused the big increase in trading volume.

Some speculate that it may be due to quant funds and high-frequency trading, where computers and algorithms are used to execute a large number of trades at incredible speeds. While this is more commonly seen in futures trading, it is possible that some ETFs may also be used for this purpose.