U.S. Spot Bitcoin ETFs recorded significant net inflows of over $870 million on October 29, marking one of the largest inflow days since these products launched in January.
Key Players and Dynamics
Among the ETFs, BlackRock's IBIT led with over $629 million in net inflows, followed by Fidelity’s FBTC at $133 million and Bitwise’s BITB at $52 million. Other notable funds included Grayscale’s mini Bitcoin trust, VanEck’s HODL, and Ark’s ARKB. Grayscale's flagship Bitcoin trust experienced outflows totaling $17 million. Overall, Bitcoin ETF trading volume reached an impressive $4.75 billion, with IBIT alone accounting for $3.3 billion.
Market Ahead of U.S. Elections
The influx of capital into Bitcoin ETFs coincided with Bitcoin's price approaching $73,500, nearly reaching its all-time high. Market participants are aware of potential volatility introduced by the upcoming U.S. elections. Some traders are targeting an $80,000 price level in November, with options trading reflecting a surge in demand for bullish sentiment. ETF analyst Eric Balchunas noted that this might indicate a FOMO frenzy, similar to the ARK Innovation ETF in 2020.
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 this milestone could be achieved by December, overtaking Nakamoto's estimated holdings of 1.1 million BTC.
The significant inflows into U.S. Spot Bitcoin ETFs reflect increasing interest in cryptocurrencies ahead of political events. This could ignite a new phase of growth and market dynamics in the coming months.
