On Tuesday, the BlackRock Bitcoin ETF (IBIT) experienced a remarkable surge in daily trading volume, reaching $3.3 billion and contributing to $870 million in inflows.
BlackRock Bitcoin ETF Surges Into Top Three Amidst $23 Billion Inflows
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Bloomberg ETF strategist Eric Balchunas remarked on the unexpected spike in IBIT's trading volume, suggesting it may stem from fear of missing out (FOMO). He anticipates this momentum could prompt further inflows as Bitcoin continues its price ascent. Despite Bitcoin nearing its all-time high, retail investor enthusiasm has yet to materialize.
The U.S. spot ETF market for Bitcoin appears to be on an unstoppable trajectory, largely fueled by the BlackRock Bitcoin ETF (IBIT), which is igniting significant FOMO among investors. On Tuesday, IBIT achieved a remarkable $3.3 billion in trading volume, marking a six-month high. Over the past two weeks, IBIT has dominated inflows, indicating that institutional FOMO is intensifying as the U.S. election approaches in less than a week.
$IBIT traded $3.3b today, biggest number in 6mo, which is a bit odd bc btc was up 4% (typically ETF volume spikes in a downturn/crisis). Occasionally tho volume can spike if there a FOMO-ing frenzy (a la $ARKK in 2020). Given the surge in price past few days, my guess is this is… pic.twitter.com/z44ZfggHVm
BlackRock Bitcoin ETF Dominates $870 Million Inflows
On October 29, U.S. Bitcoin ETFs collectively saw inflows of approximately $870 million, with BlackRock’s IBIT capturing a substantial $640 million. This is one of the largest inflow days since its inception, trailing only behind the record of $1.045 billion set on March 12, 2024. Given the current excitement, another record could be on the horizon.
As a result, IBIT's total inflows since launch have soared to nearly $25 billion, more than double that of its closest competitor, Fidelity’s FBTC. These significant inflows coincide with a broader rally in the cryptocurrency market as Bitcoin approaches its previous all-time highs.
Bloomberg’s Eric Balchunas noted the extraordinary $3.3 billion trading volume for the BlackRock Bitcoin ETF on Tuesday. He highlighted that such spikes are typically associated with market downturns, making this surge noteworthy.
Balchunas speculated that this recent increase might be fueled by FOMO linked to Bitcoin’s ongoing price rally. He observed that IBIT was not the only ETF benefiting from heightened trading activity, suggesting a broader trend of FOMO-driven buying.
Will Bitcoin Reach New All-Time Highs?
Following an 8% increase over the past week, Bitcoin is now just 5% shy of its all-time highs. At the time of writing, Bitcoin's price stands at $72,267, up 1.75%, with a market capitalization of $1.429 trillion. However, retail FOMO has yet to take off, according to crypto analyst Miles Deutscher.
#Bitcoin is on the verge of breaking all-time highs, and retail interest is still almost non-existent.
Higher. pic.twitter.com/EH4fWnjIvG
Historically, during past Bitcoin bull cycles, retail investor interest has been crucial in driving prices to new peaks. Currently, large institutional players and Bitcoin whales seem to be leading the market. Once retail enthusiasm ignites, we could witness a surge towards $100,000 and beyond.
Additionally, the Bitcoin MVRV ratio has recently surpassed its 365-day simple moving average, signaling potential bull runs ahead, alongside the emergence of a golden cross.
While #Bitcoin $BTC at $72,000 might feel like a late entry, history suggests otherwise. The MVRV Ratio crossing over its 365-SMA has often signaled major bull rallies, and this golden cross just happened again! pic.twitter.com/Awkh0WdIOK
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