On Tuesday, the BlackRock Bitcoin ETF (IBIT) recorded a substantial daily trading volume of $3.3 billion, contributing to $870 million in inflows.
Key Points
- Bloomberg’s ETF strategist Eric Balchunas noted that IBIT’s trading volume spike might signal investor FOMO.
- He anticipates continued inflows as Bitcoin’s price edges closer to its all-time high.
- Retail FOMO hasn’t yet fully engaged, even as Bitcoin approaches peak price levels.
The US spot Bitcoin ETF market is gaining momentum, led largely by BlackRock’s IBIT ETF, which saw a remarkable trading volume of $3.3 billion on Tuesday, reaching its highest level in six months. Over the past two weeks, IBIT has driven institutional inflows, especially as the US election nears.
BlackRock Bitcoin ETF’s Dominance in Recent $870 Million Inflows
On October 29, total US Bitcoin ETFs recorded nearly $870 million in inflows, with BlackRock’s IBIT accounting for $640 million. This marks one of the largest inflows since its launch, with the record set in March 2024 at $1.045 billion. The recent excitement suggests that a new record could be close.
Since its inception, IBIT has attracted nearly $25 billion in net inflows, over twice the amount of its closest competitor, Fidelity’s FBTC. These significant inflows coincide with Bitcoin’s approach to its all-time high.
Eric Balchunas highlighted the $3.3 billion in IBIT trading volume, a rare occurrence as ETF volumes typically increase during market downturns. He attributes the surge to potential FOMO, given Bitcoin’s price rally over the past few days. He also noted that other Bitcoin ETFs experienced high trading volumes, suggesting a wave of FOMO-driven buying.
Could Bitcoin Hit an All-Time High Soon?
With Bitcoin gaining 8% over the past week, it’s now within 5% of its all-time high, trading at $72,267 with a $1.429 trillion market cap. Despite strong ETF inflows, retail FOMO remains muted, observed crypto analyst Miles Deutscher.
Historically, retail interest has been a major factor in Bitcoin’s peak runs. If retail FOMO kicks in, analysts expect Bitcoin could rally to $100,000 or beyond. The Bitcoin MVRV ratio, currently above its 365-day SMA, also signals potential for a major bull run.
