The BlackRock Bitcoin ETF (IBIT) has made headlines as its daily trading volume surged to $3.3 billion on Tuesday, marking a six-month high and attracting significant investor attention. This surge has contributed to inflows totaling $870 million across U.S. Bitcoin ETFs, with IBIT capturing a substantial portion of that, amounting to $640 million.
Bloomberg ETF strategist Eric Balchunas highlighted this unusual spike in trading volume, attributing it to a wave of fear of missing out (FOMO) among investors. He speculates that this trend could lead to even more inflows in the days ahead, particularly as Bitcoin prices continue to rally.
Despite Bitcoin approaching its all-time high, retail investor enthusiasm has yet to fully materialize. The current momentum in the U.S. spot ETF market for Bitcoin appears unstoppable, with BlackRock’s IBIT playing a pivotal role in triggering heightened investor interest. The ETF has now achieved nearly $25 billion in net inflows since its inception, significantly surpassing its closest competitor, Fidelity’s FBTC.
On October 29, the inflows into U.S. Bitcoin ETFs reached almost $870 million, with IBIT leading the way. This marks one of the largest inflow days since its launch, with the previous record set on March 12, 2024, at $1.045 billion. Given the current excitement in the market, a new record may be on the horizon.
Balchunas pointed out that the $3.3 billion trading volume is particularly noteworthy, as ETF trading activity generally spikes during market downturns. However, he believes this surge is driven by FOMO, fueled by Bitcoin’s ongoing price rally.
Moreover, other Bitcoin ETFs also experienced increased trading volumes on the same day, indicating that the market may be witnessing a broader FOMO-driven buying wave. Balchunas expects that if this trend continues, it could result in substantial inflows in the near future.
As Bitcoin has gained about 8% over the past week, its price is currently hovering just 5% below its all-time high. At press time, Bitcoin was trading up 1.75% at $72,267, with a market capitalization of $1.429 trillion. However, despite the strong inflows into Bitcoin ETFs, analyst Miles Deutscher notes that retail FOMO has yet to emerge.
Historically, during past Bitcoin bull cycles, retail investment has played a crucial role in driving prices to new highs. Currently, it appears that larger institutional investors and Bitcoin whales are dictating market movements. Should retail investors join the fray, there’s potential for Bitcoin to rally towards the $100,000 mark and beyond.
Another bullish indicator is the Bitcoin Market Value to Realized Value (MVRV) ratio, which has surpassed its 365-day simple moving average, signaling the possibility of significant upward trends, alongside the occurrence of a golden cross in the market.
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