Coinbase International Exchange Tops $1B Daily Volume While Bitcoin ETF Volumes Surge 

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On Feb. 20, the company’s CEO Bri­an Arm­strong report­ed that Coin­base Inter­na­tion­al Exchange con­tin­ues to grow, hit­ting $1 bil­lion in dai­ly vol­ume for the first time.

The exchange, which is based in Bermu­da, offers cryp­to per­pet­u­al futures trad­ing to pro­fes­sion­al non-US traders.

It was set up out­side of the Unit­ed States due to the ongo­ing war on cryp­to and legal bat­tles. Arm­strong added, “Would be great to see per­pet­u­al futures allowed in the U.S. mar­ket as well.”

Bitcoin ETF Volumes Soar

Cryp­to per­pet­u­al futures are a type of deriv­a­tives con­tract that allow traders to spec­u­late on the future price of dig­i­tal assets with­out hav­ing to own the under­ly­ing token. Unlike reg­u­lar futures, they have no expiry date and allow traders to hold posi­tions indef­i­nite­ly rather than set­tling at an expiration.

The record vol­ume day for Coin­base Inter­na­tion­al Exchange clear­ly shows that there is demand for such prod­ucts among insti­tu­tion­al investors.

Addi­tion­al­ly, the new­ly launched batch of spot Bit­coin ETFs in the US is also see­ing huge volumes.

On Feb. 20, Bloomberg senior ETF ana­lyst Eric Balchu­nas report­ed that the new nine funds had the biggest vol­ume day since launch day with about $2 bil­lion in com­bined trading.

There were big vol­umes on VanEck’s Bit­coin Trust (HODL), which trad­ed just under $400 mil­lion for the day, a new record. The Wis­domTree Bit­coin Fund (BTCW) and the Bit­wise Bit­coin ETF (BITB) also made new dai­ly vol­ume records.

For con­text, $2 bil­lion in dai­ly trad­ing would put them in the top ten among ETFs and top twen­ty among stocks, he said before exclaim­ing, “It’s a lot.”

The VanEck vol­ume spike for HODL was from an influx of around 32,000 indi­vid­ual trades.

VanEck Volume Baffling

Balchu­nas was try­ing to fig­ure out what hap­pened “giv­en how sud­den and explo­sive the increase in the num­ber of trades was (500 trades Fri­day, 50,000 trades today),” he said before adding:

“I’m won­der­ing if some Red­dit or Tik­Tok influ­encer type rec­om­mend­ed them to their fol­low­ers. Feels retail army-ish.”

More­over, the HODL fund inflow num­bers do not cor­re­late with this vol­ume surge since there was only $5.9 mil­lion, accord­ing to pre­lim­i­nary fig­ures from Far­side.

Nev­er­the­less, com­pa­ny CEO Jan van Eck was hap­py with the boost in volume.

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