Spot Bitcoin ETFs in the U.S. recorded net inflows exceeding $870 million on October 29, marking one of the highest inflow days since these products first launched in January. This comes amid a rise in Bitcoin prices and expectations of volatility ahead of the U.S. elections.
Record Inflows in Bitcoin ETFs
Leading the ETFs was BlackRock’s IBIT with over $629 million in net inflows, followed by Fidelity’s FBTC with $133 million, and Bitwise’s BITB with $52 million. Other notable funds included Grayscale’s mini Bitcoin trust (BTC) at $29 million, VanEck’s HODL at $16 million, and Ark’s ARKB at $12 million. The only exception was Grayscale’s flagship Bitcoin trust (GBTC), which experienced outflows totaling $17 million. The overall trading volume for Bitcoin ETFs reached an impressive $4.75 billion, with IBIT alone accounting for $3.3 billion.
Market Dynamics Ahead of U.S. Elections
The influx of capital into Bitcoin ETFs coincided with Bitcoin's price, which approached $73,500. Market participants are aware that the upcoming U.S. elections could introduce volatility. Some traders are targeting an $80,000 price level in November, with options trading reflecting a surge in demand for this bullish sentiment. ETF analyst at Bloomberg, Eric Balchunas, noted that this rise might indicate a 'FOMO frenzy,' akin to the behavior seen with the ARK Innovation ETF in 2020, or high-frequency trading activity. Galaxy Digital’s head of research, Alex Thorn, supported this observation, noting that October 29 marked the third-highest trading volume day for Bitcoin ETFs since April 1, 2024.
Implications for Future Growth
Over the past twelve days, IBIT has maintained an unbroken inflow streak, accumulating around $3.2 billion since October 10. Interestingly, the U.S. Bitcoin ETFs are on track to surpass the holdings of Bitcoin’s mysterious creator, Satoshi Nakamoto. Current trends suggest that these ETFs could accumulate approximately 17,000 BTC weekly, potentially exceeding 1 million BTC by the end of the year. Balchunas predicts that this milestone could be achieved by December, overtaking Nakamoto's estimated holdings of 1.1 million BTC.
The growing interest in spot Bitcoin ETFs in the U.S. signals significant changes in the cryptocurrency market. These developments could have profound implications for the future of the crypto industry, especially considering the current economic and political climate.
