With BlackRock’s Bitcoin ETF (IBIT) recording a strong trade volume on Tuesday, October 29, the U.S. Bitcoin ETF market is booming. As more institutional investors showed interest in Bitcoin, the ETF’s trading volume hit a six-month high of $3.3 billion. The main cause of this spike is FOMO, or the fear of missing out, as the price of Bitcoin gets closer to its peak.
About $870 million was invested in Bitcoin ETFs in the United States on Tuesday alone, with BlackRock’s IBIT contributing more than $599.8 million. This puts the product within a whisker of the record-high daily creation of $1.045 billion recorded on March 12, 2024, and ranks among the top recorded daily net creations since the ETF’s debut. IBIT’s net inflows are close to $25 billion, which is twice as much as rival Fidelity’s FBTC fund’s total inflows.
ETF Market Attracts Institutional Investors
The jump in trading volume is uncommon because ETF trading usually peaks during market downturns, according to Bloomberg ETF strategist Eric Balchunas. Given that the Bitcoin rise has driven the digital currency to 8% higher in only the last week, Balchunas suggested that institutional FOMO might be at work.
As of this writing, Bitcoin’s market value is $1.429 trillion, and its price is $72,267, which is near its all-time high. A spike in Bitcoin ETF trading is capped off by BlackRock’s IBIT account, which shows higher trading volumes and greater turnover.
Even though analyst Miles Deutscher points out that retail engagement was essential in propelling the asset to all-time highs during prior bull markets, retail interest in Bitcoin is still low. Retail traders may soon enter the market as a result of Bitcoin’s recent surge and potential preparation for its next peak.
In an indication of possible bullish momentum, Bitcoin’s MVRV (Market Value to Realized Value) ratio just overtook its 365-day Simple Moving Average. A ‘golden cross’ pattern and these indicators point to the possibility that Bitcoin’s surge is picking up speed.
Conclusion
BlackRock’s Bitcoin ETF (IBIT) has seen a significant trading volume increase, signaling a strong influx of institutional interest in Bitcoin as its price approaches its all-time high. The $3.3 billion trading volume, largely driven by FOMO, underscores the growing role of institutional players in the cryptocurrency market.
BlackRock’s IBIT ETF saw inflows of nearly $600 million in a day, highlighting the dominance of institutional investments over retail interest at this stage. However, the potential entry of retail investors could further fuel Bitcoin’s rally, especially as the cryptocurrency’s MVRV ratio and golden cross patterns point to continued bullish momentum. If institutional support sustains and retail investors join in, Bitcoin may have a solid chance to set new highs in the near term.
Anthony Pedro
Anthony Pedro is a seasoned crypto writer with a deep passion for blockchain technology and digital currencies. With over 4 years of experience in the cryptocurrency space, Anthony has become a trusted voice, offering insightful analysis and commentary on the latest trends, innovations, and market movements. When not writing, he is actively engaged in the crypto community, attending conferences, advising blockchain startups, and experimenting with new projects.