Bitcoin ETFs in the US attract record $827 million inflows, signaling heightened investor interest
Bitcoin ETFs in the US attract record $827 million inflows, signaling heightened investor interest
As a sign of growing confidence in Bitcoin (BTC) as an investment tool, Bitcoin exchange-traded funds (ETFs) in the United States attracted a record $827 million in inflows on October 29, highlighting increased investor interest amid a BTC price rally.
Crypto experts attribute the capital surge across the 11 U.S.-listed Bitcoin ETFs largely to speculative sentiment and a fear of missing out (FOMO), as investors are eager to gain exposure to BTC, which is close to setting a new all-time high, reported Cointelegraph.
Currently, BTC is trading at around $72,274, just 2% below its historical peak, a level closely watched by market participants.
“FOMO frenzy,” described Bloomberg ETF analyst Eric Balchunas on October 29, who noted that BlackRock is the leader in daily Bitcoin ETF inflows, drawing $599.8 million.
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Balchunas emphasized that BlackRock’s ETF trading volume spike suggests speculative investor activity as they aim to secure Bitcoin exposure ahead of a potential price surge. In his analysis, Balchunas questioned whether this trading rush reflects genuine FOMO among retail and institutional investors or if it’s primarily driven by increased arbitrage activity. The market will soon reveal the answer, as current inflow data will either confirm ongoing speculative interest or indicate a temporary spike due to high-frequency trading and arbitrage opportunities.
Supporting Balchunas’ analysis, Galaxy Digital's head of research, Alex Thorn, pointed out that October 29 marked the third-highest trading volume for Bitcoin ETFs since April 1, 2024. Total daily trading volume for U.S. spot Bitcoin ETFs reached $4.64 billion, with BlackRock’s IBIT ETF accounting for nearly 38% of this activity. Grayscale’s Bitcoin Trust (GBTC) also had a notable day, with inflows totaling $390.32 million.
Bitcoin approaches a critical price milestone
As Bitcoin surged above $70,000 for the first time since June, analysts highlighted the significance of this price level for traders anticipating Bitcoin’s next breakout. Crypto analyst Matthew Hyland noted that October 29 saw Bitcoin close with its second-highest daily candle in history, underscoring the current intensity of buying pressure.
Meanwhile, BlackRock’s IBIT ETF has seen twelve consecutive days of net-positive inflows, totaling around $3.2 billion since its last net-zero flow day on October 10. This consistent inflow demonstrates sustained investor confidence in Bitcoin ETFs as a regulated means of gaining exposure to the volatile cryptocurrency market.
Looking ahead: Market momentum and risks
With Bitcoin nearing its record high and Bitcoin ETFs experiencing elevated trading volumes, market participants are closely watching to see if this rally will push Bitcoin beyond its previous peak. However, some analysts caution that “unusually large” ETF inflows could precede a market correction as the sector adjusts. For now, investor interest remains robust, positioning Bitcoin ETFs—and Bitcoin itself—as critical indicators in the evolving digital asset landscape.
This new momentum suggests that Bitcoin may soon solidify its role in traditional portfolios, with the success of ETFs like BlackRock’s underscoring the asset’s growing integration into mainstream finance.
CryptoQuant CEO Ki Young Ju noted that institutional demand for Bitcoin has reached unprecedented levels in 2024, driven by significant BTC inflows into “whale” addresses.
Read also: Bitcoin reaches $73,540, nearing ATH and reviving bullish market sentiment
