• BlackRock’s Bitcoin ETF hits $3.3B volume, marking six-month peak as institutional interest surges.
  • US Bitcoin ETFs see $870M inflows; BlackRock leads with $640M, suggesting strong investor confidence.
  • Bitcoin nears all-time highs; institutional “FOMO” drives record activity in BlackRock’s ETF.

On Tuesday, BlackRock’s Institutional Bitcoin Trust (IBIT) reported $3.3 billion in trading volume. This marks its highest level in six months. Over recent weeks, IBIT has led inflows as institutional interest grows before the U.S. election. 

$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

The volume surge reflects rising market anticipation with Bitcoin prices nearing historic highs.

Bitcoin ETFs See Strong Inflows

On October 29, U.S. Bitcoin ETFs reported inflows of nearly $870 million. BlackRock’s IBIT took the largest share, attracting $640 million. This ranks among the biggest inflows since the fund’s launch. 

The ETF’s net inflows now approach $25 billion, well ahead of Fidelity’s FBTC. This surge in investment aligns with a broader crypto rally as Bitcoin edges toward its all-time peak.

Analysts See FOMO Driving Institutional Moves

Eric Balchunas pointed out the unusual trading volume in BlackRock’s Bitcoin ETF. ETF volumes usually rise in market downturns, making this activity notable. Balchunas believes that fear of missing out is likely pushing institutional interest. 

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As Bitcoin prices approach record levels, other Bitcoin ETFs are also seeing strong volume. This may signal a shift in investor confidence towards crypto assets. The upcoming November election is expected to shift the market hence the uncertainty is driving the surge too.

Institutional Confidence Boosts Bitcoin Optimism

Recent inflows show that institutions are backing Bitcoin’s growth potential. In past cycles, retail investors have driven Bitcoin to record highs. This time, large investors appear to be leading. 

The Bitcoin MVRV ratio, a key market signal, has also passed its 365-day average. Analysts believe that if retail FOMO follows, Bitcoin could reach and potentially surpass previous highs.

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