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BlackRock Bitcoin ETF Achieves New 6-Month High Milestone
The daily trading volume of the BlackRock Bitcoin ETF (IBIT) increased to $3.3 billion on Tuesday, which accounted for the majority of the $870 million in inflows.
The US spot ETF market for Bitcoin appears to be irrepressible, and the BlackRock Bitcoin ETF (IBIT) has sparked a significant FOMO among investors. The BlackRock IBIT reached its six-month peak on Tuesday, with a trading volume of $3.3 billion.
The inflows have been led by IBIT for the past two weeks, indicating that institutional FOMO has taken hold in anticipation of the US election results, which are scheduled to be announced in less than a week.
BlackRock Bitcoin ETF is the primary inflow source of $870 million
The US BTC ETFs experienced nearly $870 million in inflows on Tuesday, October 29, with BlackRock's IBIT accounting for most of the $640 million inflows. The record for the highest inflow since launch was set on March 12, 2024, at $1.045 billion. This represents one of the most significant inflows. A new benchmark may be achievable in light of the recent excitement.
This has resulted in IBIT's net inflows approaching $25 billion since inception, more than double that of its immediate competitor, Fidelity's FBTC. As the Bitcoin price approaches its all-time high, these enormous inflows have persisted amid the broader crypto market rally.
Eric Balchunas, Bloomberg's ETF strategist, emphasized the $3.3 billion in trading volumes that the BlackRock Bitcoin ETF recorded yesterday. He thinks such a volume surge is unusual, as ETF activity typically increases during market downturns.
Nevertheless, Balchunas proposed that the recent increase may be attributed to “FOMO” (fear of missing out) due to the Bitcoin price rally that has persisted for the past few days.
The Bloomberg strategist also noted that IBIT was not the only Bitcoin ETF to experience a significant increase in trading volumes yesterday; other Bitcoin ETFs also experienced a similar trend. Consequently, he thinks this may be a buying wave that FOMO is leading. Balchunas also stated that the impact should be evident in substantial inflows in the coming days if this is indeed a FOMO frenzy.
Coming Soon: Bitcoin's All-Time High?
Over the past week, the Bitcoin price has increased by 8%, bringing it to within 5% of its all-time highs. At the time of publication, the BTC price is trading at $72,267, representing a 1.75% increase, with a market capitalization of $1.429 trillion.
Nevertheless, crypto analyst Miles Deutscher observed that the retail FOMO in BTC has yet to materialize despite the substantial inflows into Bitcoin ETFs.
During the previous two Bitcoin bull run cycles, retail purchasing interest was instrumental in propelling Bitcoin to unprecedented heights. This indicates that large investors and Bitcoin whales drive the price action. Consequently, a rally to $100,000 and above is feasible once retail FOMO takes hold.
Another significant bullish indicator is the Bitcoin MVRV ratio, which has exceeded its 365-SMA, indicating significant bull rallies and a golden cross.