Bitcoin ETF Inflows Surge as BTC Approaches Record Levels

TLDR

• U.S. Bitcoin ETFs recorded $870M net inflows in a single day (Oct 30, 2024)
• BlackRock’s IBIT led with $629M inflows, followed by Fidelity’s FBTC at $133M
• Total ETF trading volume hit $4.75B, highest since March
• Bitcoin price reached $73,000, approaching all-time high
• Market activity intensifies ahead of U.S. elections with $80,000 price targets

Bitcoin ETFs posted their third-highest daily inflow since January launch, with U.S.-listed funds attracting $870 million on October 30, 2024. The surge came as Bitcoin’s price approached historic highs, touching $73,000 during trading.

BlackRock’s IBIT emerged as the clear leader, capturing $629 million in new investments. This represented more than 72% of the day’s total inflows, demonstrating institutional investors’ strong preference for the world’s largest asset manager’s Bitcoin product.

Fidelity’s FBTC secured second place with $133 million in inflows, while Bitwise’s BITB added $52 million. Other funds seeing positive flows included Grayscale’s mini bitcoin trust with $29 million, VanEck’s HODL with $16 million, and Ark’s ARKB with $12 million.

Trading volumes reached exceptional levels, totaling $4.75 billion across all Bitcoin ETFs. This marked the highest trading activity since March, with IBIT alone accounting for $3.3 billion in volume.

Grayscale’s GBTC stood out as the only fund recording outflows, with $17 million leaving the product. This continues a pattern of selective investor preference among Bitcoin ETF offerings.

The surge in ETF activity coincided with Bitcoin’s price movement toward $73,000, its highest level since March. The cryptocurrency has gained 7.7% over the past week, leading broader market advances.

Market participants point to the upcoming U.S. elections as a potential catalyst for increased volatility. Options market data reveals growing interest in contracts targeting $80,000 for November, regardless of election outcomes.

BlackRock’s IBIT has shown particular strength, maintaining inflows for 12 consecutive trading days. Since October 10, the fund has accumulated $3.2 billion in new assets, reflecting sustained institutional demand.

Bloomberg ETF analyst Eric Balchunas noted the unusual nature of the high trading volume during an upward price movement. Typically, elevated trading occurs during market downturns or crises.

Balchunas suggested the current pattern might indicate FOMO (Fear Of Missing Out) among investors, similar to patterns seen with other popular ETFs like ARKK in 2020. He predicted continued strong inflows in the coming days.

The technical picture shows Bitcoin trading in a range between $54,147 and $69,500 since the April halving event. The recent move above $72,635 represents a test of key resistance levels.

Total Bitcoin ETF assets under management have grown steadily since the products launched in January. The consistent inflows suggest institutional investors are becoming more comfortable with Bitcoin exposure through regulated investment vehicles.

Daily trading patterns reveal most activity concentrates in the U.S. market hours, with IBIT seeing particularly heavy volume in the morning trading session. This suggests active participation from institutional investors and financial advisors.

Market makers report improved liquidity and tighter spreads across Bitcoin ETF products, making them increasingly attractive to various investor types. The competitive landscape has led to fee compression among providers.

The October 30 data shows institutional investors continue building Bitcoin positions through ETF products, even as prices approach previous highs.