Bitcoin Spot ETFs Experience Record Inflow of $870M, BlackRock’s IBIT Takes the Lead with $643M
On October 29, Bitcoin spot exchange-traded funds (ETFs) in the United States received a record inflow of $870 million. Leading the pack was BlackRock’s iShares Bitcoin Trust (IBIT), which saw an inflow of $643 million, according to data from SoSo Value.
The daily trading volume for BlackRock’s Bitcoin ETF skyrocketed 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 2% below its all-time high.
Bloomberg ETF analyst Eric Balchunas suggests that this increase in volume indicates a “FOMO” (fear of missing out) wave, possibly driven by investors eager to capitalize on Bitcoin’s momentum. In a post on X, Balchunas confirmed, “FOMO confirmed,” referencing data that showed a significant daily inflow of $599.8 million for BlackRock’s ETF.
Balchunas observed that elevated volumes were seen across all major Bitcoin ETFs in the past two days, indicating a market-wide surge in investor interest. He also speculated on the nature of the volume increase, questioning whether it resulted from high-frequency arbitrage trading or genuine speculative interest from new participants. If these volumes continue, it could confirm the presence of FOMO-driven buying.
Meanwhile, Alex Thorn, the head of research at Galaxy Digital, pointed out that October 29 ranked as the third-highest day for Bitcoin ETF trading volumes since April 2024. 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 volume. This surge in trading activity highlights the strong liquidity in the Bitcoin ETF market, although it doesn’t necessarily indicate new capital inflow.
However, IBIT has consistently attracted 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’s Potential for New All-Time High
Bitfinex analysts suggest that a “perfect storm” could propel Bitcoin to a new all-time high in the coming weeks. They believe that the possibility of a Trump victory in the upcoming U.S. presidential election, combined with seasonally bullish market conditions, positions Bitcoin for significant gains.
The analysts describe the current setup as unique, as it brings together “election uncertainty, the ‘Trump trade’ narrative, and favorable Q4 seasonality,” all driving Bitcoin’s bullish momentum.
The report highlights the growing belief in a “Trump trade” narrative, with many investors viewing a Trump win as beneficial for crypto assets due to expectations of reduced regulatory pressures. This sentiment has led to increased trading activity and boosted confidence in the cryptocurrency market.
Although national polls show a tighter race, Trump is currently leading Vice President Kamala Harris by a significant margin on platforms like Polymarket. The report concludes that if Bitcoin’s upward momentum continues, fueled by election dynamics and year-end positioning, the digital asset could soon break its previous all-time high of $73,800.
