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Launched at the end of November 2010, the VelocityShares Daily 2x VIX Short-Term ETN (NASDAQ:TVIX) has been the most popular of the volatility-based ETPs to hit the market in the past six months. Today TVIX hit a new milestone – barely halfway into the trading session – by surpassing one million shares for the first time.

Back in the middle of December, I predicted TVIX "will hit a tipping point and become the darling of day traders" in 2011. Frankly, I am a little surprised that it has taken more than five months to hit the one million share mark, but now that TVIX is adding liquidity, I would expect that day traders, hedge funds and other short-term trading operations will become much more active in this product.

Below is a snapshot of the intraday movement of TVIX taken from Bloomberg for iPad.

(Click to enlarge)

Disclosure(s): None

Source: TVIX Trades 1 Million Shares for First Time