BlackRock’s iShares Bitcoin Trust (IBIT) led the pack, witnessing a record $643 million inflow.
Bitcoin spot exchange-traded funds (ETFs) in the United States saw record inflows on October 29, totaling $870 million.
BlackRock’s iShares Bitcoin Trust (IBIT) led the pack, witnessing a record $643 million inflow, according to data from SoSo Value.
Daily trading volume for BlackRock’s Bitcoin ETF soared to $3.35 billion, marking its highest level in over six months.
Bitcoin Rallies Above $72,000
The price rally of Bitcoin, which hit $72,390 on October 29—just 2% short of an all-time high—is in line with this trading spike.
This volume increase points to a “FOMO” (fear of missing out) wave, which could be driven by investors keen to capitalize on Bitcoin’s momentum, according to Bloomberg ETF analyst Eric Balchunas.
“FOMO confirmed,” Balchunas wrote in a post on X, citing data indicating a significant $599.8 million daily inflow for BlackRock’s ETF.
$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
— Eric Balchunas (@EricBalchunas) October 29, 2024
According to Balchunas, high volumes were seen in all of the main Bitcoin ETFs during the previous two days, indicating a general increase in investor interest.
In addition, Balchunas conjectured about the cause of the volume increase, wondering whether it was due to high-frequency arbitrage trading or sincere speculation from newcomers.
If these volumes continue, he said, it might validate the existence of buying motivated by FOMO.
Alex Thorn, head of research at Galaxy Digital, pointed out that October 29 was the third-highest day for trading volumes of Bitcoin ETFs since April 2024.
With a trading volume of $390.32 million, Grayscale Bitcoin Trust (GBTC) saw a notable inflow among other Bitcoin ETFs, ranking second only to BlackRock’s IBIT.
On October 29, the total trading volume of all spot Bitcoin ETFs in the United States was $4.64 billion, with IBIT accounting for about 38% of that total.
Although it does not always indicate fresh capital inflow, the spike in trading volume highlights the Bitcoin ETF market’s high liquidity.
However, according to Farside data, IBIT has drawn consistent inflows over the last twelve days, reaching about $3.2 billion since October 10.
The market is getting closer to an all-time high as Bitcoin crossed $70,000 on October 29 for the first time since June, which is igniting investor excitement.
Bitcoin Eyes New ATH
In the upcoming weeks, Bitfinex analysts predict a “perfect storm” that could propel Bitcoin to a new all-time high.
According to the analysts, Bitcoin is poised for substantial gains due to seasonally bullish market conditions and the potential for a Trump victory in the next U.S. presidential election.
With “election uncertainty, the ‘Trump trade’ narrative, and favorable Q4 seasonality” coming together to drive Bitcoin’s bullish momentum, analysts characterize the current situation as unique.
A Trump victory is increasingly viewed as advantageous for cryptocurrency assets, according to the report, which also highlights the growing “Trump trade” narrative. Many investors anticipate fewer regulatory pressures.
Increased confidence in the cryptocurrency market and increased trading activity have resulted from this sentiment.
Despite national polls showing a closer race, Trump is currently leading Vice President Kamala Harris by a significant margin on sites like Polymarket.
According to the report’s conclusion, Bitcoin may soon surpass its previous all-time high of $73,800 if its upward momentum continues, driven by year-end positioning and election dynamics.