Originally published on: October 30, 2024
BlackRock’s Bitcoin exchange-traded fund (IBIT) experienced a significant surge in trading volume on Oct. 29, reaching a whopping $3.35 billion, marking its highest level in over six months. This spike in activity was attributed to panic buying of Bitcoin, which was trading at $72,390, just a 2% move away from its all-time high.
The increase in trading volume led Bloomberg ETF analyst Eric Balchunas to declare “FOMO confirmed.” Daily inflows for BlackRock also hit $599.8 million on the same day.
This surge was not limited to IBIT alone, as total inflows for all spot Bitcoin ETFs trading in the US reached $827 million, according to data from CoinGlass. Galaxy Digital’s head of research, Alex Thorn, noted that Oct. 29 was the third-highest Bitcoin ETF trade volume day since April 1, 2024, with spot Bitcoin ETFs in the US seeing a combined trading volume of $4.64 billion.
Despite the high trading volume, it’s important to note that increased liquidity and trading activity do not necessarily indicate new capital flowing into the funds. IBIT, for example, has seen continuous inflows for the past 12 days, totaling approximately $3.20 billion since Oct. 10.
This surge in trading activity comes as Bitcoin broke above $70,000 for the first time since June 6. Traders have been closely monitoring this crucial price level as Bitcoin had been consolidating between $54,147 and $69,500 following the halving in April.
On Oct. 29, Bitcoin completed its “second highest daily candle in history,” as pointed out by crypto analyst Matthew Hyland. The frenzy in the Bitcoin market has raised questions about whether this surge is driven by speculative buyers or arbitrage traders.
While the future remains uncertain, the record trading volume in BlackRock’s Bitcoin ETF and the overall market activity indicate a growing interest in cryptocurrency investments. As always, investors are advised to conduct their own research and exercise caution when making financial decisions.
