BlackRock Bitcoin ETF Sees Massive Trading Surge Amid Bitcoins Rally

On October 29, BlackRocks Bitcoin exchange-traded fund (ETF) saw its trading volume skyrocket to $3.35 billion, marking its highest level in over six months. This significant surge in activity is being interpreted by analysts as a speculative frenzy, driven by investor fear of missing out (FOMO) as Bitcoin inches closer to its all-time high.

Investors Enter Panic-Buying Mode as Bitcoin Nears ATH

ETF analyst Eric Balchunas pointed out that the substantial increase in trading volume reflects heightened panic-buying of Bitcoin among investors. The cryptocurrency currently trades at $72,390, just 2% shy of its record high. Balchunas described the situation as FOMO confirmed, with data showing that BlackRocks daily inflows reached $599.8 million on October 29, adding to the ETFs trading volume spike.

Bitcoin ETF Volume Spikes Across U.S. Markets

On the same day, inflows for all U.S.-based spot Bitcoin ETFs totaled $827 million, as reported by CoinGlass, prompting discussions among market analysts. Some suggest the trading surge was fueled by speculative buyers, while others attribute it to increased arbitrage activity. Alex Thorn, head of research at Galaxy Digital, noted that October 29 ranked as the third-highest trading day for Bitcoin ETFs in 2024, with a combined trading volume of $4.64 billion across U.S. spot Bitcoin ETFs.

While BlackRocks IBIT ETF led the charge with $3.35 billion in trading volume, the Grayscale Bitcoin Trust (GBTC) also saw significant inflows, tallying $390.3 million for the day. Despite the high trading activity, analysts caution that it may not entirely reflect fresh capital entering the market but rather increased liquidity and trading interest.

Consistent Inflows Signal Investor Confidence

BlackRocks IBIT has recorded continuous inflows for 12 straight days, accumulating around $3.2 billion since a net-zero flow on October 10, according to data from Farside. Bitcoins recent climb above $70,000 marks the first time it has reached this level since June 6, reigniting interest from traders who are closely watching this critical price point.

Crypto analyst Matthew Hyland pointed out that Bitcoin closed October 29 with its second-highest daily candle in history, highlighting intensified market activity and renewed interest in the cryptocurrency following the April Bitcoin halving. Bitcoin had been consolidating between $54,147 and $69,500, but recent gains suggest it may be poised to test its previous all-time high in the coming days.

Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the authors opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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