Bitcoin Spot ETFs Experience Record $870M Inflow, BlackRock’s IBIT Leads With $643M
In the United States, Bitcoin spot exchange-traded funds (ETFs) witnessed an unprecedented inflow of $870 million on October 29.
Leading the pack was BlackRock’s iShares Bitcoin Trust (IBIT), which saw a record inflow of $643 million, according to data from SoSo Value.
The daily trading volume for BlackRock’s Bitcoin ETF soared to $3.35 billion, reaching its highest level in over six months.
This surge in trading activity coincided with Bitcoin’s price rally, with the cryptocurrency reaching $72,390 on October 29, just shy of its all-time high by 2%.
According to Bloomberg ETF analyst Eric Balchunas, this increase in volume suggests a “FOMO” (fear of missing out) wave, potentially driven by investors eager to capitalize on Bitcoin’s momentum.
In a post on X, Balchunas confirmed, “FOMO confirmed,” referring to data that showed a significant daily inflow of $599.8 million for BlackRock’s ETF.
Balchunas noted that elevated volumes were seen across all major Bitcoin ETFs in the past two days, indicating a surge in investor interest throughout the market.
He speculated on the nature of this volume increase, questioning whether it resulted from high-frequency arbitrage trading or genuine speculative interest from new participants.
If these volumes persist, Balchunas stated, it could confirm the presence of FOMO-driven buying.
Meanwhile, Alex Thorn, Galaxy Digital’s head of research, highlighted that October 29 ranked as the third-highest day for Bitcoin ETF trading volumes since April 2024.
Among other Bitcoin ETFs, Grayscale Bitcoin Trust (GBTC) also experienced a significant inflow, with a trading volume of $390.32 million, second only to BlackRock’s IBIT.
The combined trading volume of all spot Bitcoin ETFs in the U.S. on October 29 reached $4.64 billion, with IBIT representing approximately 38% of that.
The surge in trading volume highlights the strong liquidity in the Bitcoin ETF market, although it does not necessarily indicate new capital inflow.
Nevertheless, IBIT has been attracting consistent inflows over the past twelve days, totaling around $3.2 billion since October 10, according to Farside data.
With Bitcoin surpassing $70,000 on October 29 for the first time since June, the market is approaching its all-time high, generating excitement among investors.
Bitcoin Aims for New All-Time High
Analysts at Bitfinex suggest that a “perfect storm” could propel Bitcoin to a new all-time high in the coming weeks.
Fueled by the possibility of a Trump victory in the upcoming U.S. presidential election and favorable market conditions in the fourth quarter, Bitcoin appears poised for significant gains, according to the analysts.
They describe the current situation as unique, with the convergence of “election uncertainty, the ‘Trump trade’ narrative, and favorable Q4 seasonality” driving Bitcoin’s bullish momentum.
The report highlights a growing “Trump trade” narrative, noting that a Trump win is increasingly seen as positive for crypto assets, as many investors anticipate reduced regulatory pressures.
This sentiment has led to increased trading activity and a higher level of confidence in the cryptocurrency market.
Currently, Trump is polling ahead of Vice President Kamala Harris by a significant margin on platforms like Polymarket, although national polls show a closer race.
The report concludes that if Bitcoin’s upward momentum continues, fueled by election dynamics and year-end positioning, the digital asset could soon surpass its previous all-time high of $73,800.