VanEck, alongside WisdomTree’s Bitcoin ETFs, experienced unexpected spikes in trading volume, leaving analysts puzzled about the cause.

VanEck's Bitcoin ETF, trading under the ticker "HODL," recorded a trading volume of $258 million on February 20, marking an almost 15-fold increase from the day prior, as reported by Eric Balchunas, a senior ETF analyst at Bloomberg. The surge resulted from approximately 32,000 individual trades, a significant jump from its daily average, suggesting the involvement of numerous small investors rather than a few large ones.

Speculation about the cause of the spike includes the possibility of a social media influencer's recommendation prompting a surge in retail investor interest. Balchunas mused on this theory in a subsequent social media post, highlighting the dramatic rise in trade numbers.

In related news, on February 15, VanEck announced a reduction in its ETF fees from 0.25% to 0.20%, undercutting market leaders BlackRock and Fidelity. Meanwhile, BlackRock had recently ceased its fee waiver on its iShares fund after its assets under management (AUM) reached $5 billion, setting new fees at 0.25%.

WisdomTree’s Bitcoin Fund (WBTC) also saw a notable increase in trading activity, with its daily volume soaring to $154 million on February 20, based on Bloomberg's data. This represents a significant uptick from its usual trading pattern, with Balchunas noting an increase to 23,000 trades from just 221 the previous Friday.

These trading volume surges for both the HODL and WBTC funds occurred amid moderately elevated volumes in leading funds, such as BlackRock’s iShares Bitcoin ETF. As of the latest reports, VanEck’s Bitcoin Trust ranks as the seventh-largest spot Bitcoin ETF with $191.9 million AUM, while WisdomTree’s fund is the smallest, holding $29.4 million AUM, according to Dune Analytics.