BlackRock's IBIT Bitcoin ETF Records Historic $872M Inflows

BlackRock’s iShares Bitcoin Trust (IBIT) achieved a remarkable milestone with $872 million in inflows on October 30. This figure represents the highest single-day inflow since the fund's inception in January. The surge in inflows coincided with a significant increase in IBIT's daily trading volume, which reached $3.35 billion, marking its highest level in over six months.

• IBIT is currently the largest spot Bitcoin ETF by net assets in the United States, surpassing its previous high of $849 million recorded on March 12.

Inflows Ahead of the Presidential Election

According to data from SoSoValue, U.S. spot Bitcoin ETFs collectively garnered $893.21 million in inflows, making it the second-highest total for a single day. Other notable funds that reported inflows include:

• Fidelity’s FBTC: $12.57 million
• Grayscale’s BTC: $7.96 million
• ARKB by Ark Invest and 21Shares: $7.18 million
• Invesco’s BTCO: $7.18 million
• Valkyrie’s BRRR: $6.11 million
• VanEck’s HODL: $4.07 million

The recent inflow surge is believed to be influenced by investors seeking to hedge against economic uncertainties as the U.S. presidential election approaches, a period known for market volatility.

Institutional Interest in Bitcoin ETFs

Bloomberg analyst Eric Balchunas commented on the significant inflows into IBIT, predicting that spot Bitcoin ETFs could soon surpass Satoshi Nakamoto’s holdings of 1.1 million BTC, making them the largest holder globally. He also noted a shift from retail to institutional ownership, forecasting that institutions might comprise 40% of spot Bitcoin ETF investors by next year.

Potential for Continued Growth

Ecoinometrics highlighted Bitcoin's status as a top-performing asset over the past year, second only to a few exceptional stocks like Nvidia. Despite gold showing better risk-adjusted performance, Bitcoin remains strong in both returns and risk-adjusted metrics.

Historically, Bitcoin has shown a tendency to accelerate in performance after reaching new all-time highs, often doubling its returns within three months. The current momentum, supported by steady ETF inflows, suggests that Bitcoin may still have the potential to reach a new all-time high.