BlackRock’s Spot Bitcoin ETF Hits Record $872 Million Single-Day Inflow

Highlights:

• BlackRock’s IBTC saw $872 million in inflows, the highest since its January launch.
• Spot Bitcoin ETFs had total inflows of $893.3 million, the second-largest ever.
• The total number of Bitcoins held across all US spot ETFs surpassed 1 million.

BlackRock’s spot Bitcoin exchange-traded fund (IBIT) saw $872 million in inflows on Oct. 30. This marks its highest single-day inflow since its launch on Jan. 11, according to data from Farside. The latest inflow surpasses the iShares Bitcoin Trust’s previous record of $849 million, set on March 12.

On Wednesday, US-based spot Bitcoin ETFs experienced impressive inflows of $893.3 million, marking the second-largest daily inflow since their inception in January. The Fidelity Wise Origin Bitcoin Fund (FBTC) ranked second with $12.6 million in inflows, while the Bitwise Bitcoin ETF (BITB) experienced the lowest with outflows of $23.9 million.

The ARK 21Shares Bitcoin ETF (ARKB) and Invesco Galaxy Bitcoin ETF (BTCO) each recorded inflows of $7.2 million. The Valkyrie Bitcoin Fund (BRRR) saw inflows of $6.1 million, while the VanEck Bitcoin ETF (HODL) experienced $4.1 million. The Grayscale Mini Bitcoin ETF (BTC) recorded inflows of $8.0 million. The three remaining funds, including Grayscale’s GBTC, reported no flows for the day.

Wednesday’s net inflows raised the ETFs’ cumulative total to $24.25 billion. The trading volume for the 12 funds reached $1.97 billion yesterday, a decline from $4.75 billion the previous day.

Bitcoin ETFs Surpass 1 Million Bitcoins

Following yesterday’s developments, the total number of Bitcoins held across all nine US spot ETFs surpassed the 1 million milestone. Nate Geraci, a notable ETF analyst, provided an impressive update on the momentum of the iShares Spot Bitcoin ETF. He highlighted that IBIT attracted more capital in one day than all but seven of the 590+ ETFs launched in 2024 have accumulated over the entire year.

Pretty apropos that the biggest daily inflow ever for $IBIT is what pushed the US spot ETFs over the 1 million bitcoin held mark.. https://t.co/6RuTzdacIs

— Eric Balchunas (@EricBalchunas) October 31, 2024

On Oct. 29, IBIT’s daily trading volume reached $3.35 billion, the highest level since April 1. Bloomberg ETF strategist Eric Balchunas remarked that the surge reflects a sense of “FOMO” among market participants.

Institutional Interest in Spot Bitcoin ETFs Grows Ahead of US Elections

The inflows into spot Bitcoin ETFs indicate that institutional players are building significant positions. Balchunas noted that both retail and institutional investors have been purchasing BTC ETFs recently. He stated, “It started mostly retail but increasingly advisors institutions, which hold like 20% of shares out now but prob reach 40% within a year”.

These developments occurred less than a week before the US election, with prediction markets favoring a Donald Trump victory. Major players like MicroStrategy are becoming bullish and plan to buy an additional $42 billion in Bitcoins. 

Rachael Lucas, a crypto analyst at BTCMarkets, stated: 

“The recent surge in BlackRock’s IBIT inflows is driven by several key factors, including central banks’ global shift towards reducing interest rates, which has boosted liquidity and made capital more accessible for investors.”

She added that the anticipation of a pro-crypto Donald Trump victory in the U.S. presidential election may have further fueled this trend. At the time of publication, Bitcoin was trading at $72,283, which is about 2% below its all-time high of $73,679, which reached March 13.

Ethereum ETFs Saw Inflows

Spot Ether ETFs experienced positive but minimal net inflows yesterday, totaling $4.4 million. Fidelity’s FETH reported $5.3 million in net inflows, while 21Shares’ CETH saw $2.7 million in inflows. In contrast, Bitwise’s ETHW recorded $3.6 million in net outflows. The total trading volume for the nine spot Ether ETFs remained relatively low compared to initial expectations, with $220 million traded yesterday. Their cumulative outflows reached $481 million on Wednesday.