Bitcoin Spot ETFs Experience Record Inflow of $870M, BlackRock’s IBIT Leads with $643M
Record-breaking inflows of $870 million were observed in Bitcoin spot exchange-traded funds (ETFs) in the United States on October 29. The leading contributor to this surge was BlackRock’s iShares Bitcoin Trust (IBIT), which recorded an unprecedented inflow of $643 million, as reported by SoSo Value data. The daily trading volume for BlackRock’s Bitcoin ETF also reached a peak of $3.35 billion, marking 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% short of its all-time high. Bloomberg ETF analyst Eric Balchunas suggests that this increase in volume indicates a “FOMO” (fear of missing out) wave, potentially driven by investors keen 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, suggesting a widespread surge in investor interest. He also speculated on the nature of this volume increase, questioning whether it was a result of high-frequency arbitrage trading or genuine speculative interest from new participants. He stated that if these volumes continue, it may confirm the presence of FOMO-driven buying.
Alex Thorn, the head of research at Galaxy Digital, highlighted 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 total.
The surge in trading volume highlights the strong liquidity in the Bitcoin ETF market, although it may not necessarily reflect new capital inflows. However, IBIT has consistently attracted inflows over the past twelve days, accumulating 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, which has fueled 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. With 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. The analysts 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, indicating that a Trump win is increasingly seen as beneficial for crypto assets, with many investors anticipating reduced regulatory pressures. This sentiment has led to increased trading activity and enhanced confidence in the cryptocurrency market. Trump is currently leading Vice President Kamala Harris by a significant margin in 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.
