Bitcoin exchange-traded funds (ETFs) in the US recorded significant inflows, signaling heightened interest in BTC.
According to Spotonchain data, the US spot Bitcoin funds drew over $868 million in net inflows on Tuesday, marking one of their highest net flows since January, when these products were launched. This milestone follows Bitcoin’s move towards its all-time high of $73,750.
BTC #ETF have an inflow of $868M today, with $640M from BlackRock.
This is one of the largest inflows since the launch. The biggest BTC ETF inflow was on March 12, 2024, with $1.045B. With recent hype, a new record could be on the horizon.
BTC’s price increased by 5%… pic.twitter.com/OTn7rxAenL
— Spot On Chain (@spotonchain) October 30, 2024
BlackRock’s IBIT Tops $640.8M Inflows
According to the data, BlackRock’s IBIT led with $640 million, while Fidelity’s FBTC followed with $133.9 million. Bitwise’s BITB fund, VanEck’s HODL, and Ark’s ARKB rounded out the top five with $52.5 million, $16.5 million, and $12.4 million in inflows, respectively.
In contrast, Grayscale’s GBTC saw net outflows of $17 million and was the only fund with negative investor sentiment on Tuesday. Accordingly, total trading volumes for Bitcoin products spiked, surpassing $4.75 billion, the highest since March, with IBIT alone accounting for $3.3 billion in trades.
Market Expectations and Ether ETFs
The huge inflows into Bitcoin ETFs reflect heightened investor interest in the leading cryptocurrency ahead of the US elections, with expectations of increased market volatility driving demand.
Bloomberg ETF analyst Eric Balchunas noted that the current flow trends indicate potential “FOMO” (Fear Of Missing Out) among investors. Balchunas referenced IBIT’s 6-month peak in trading volume as an example of this FOMO trend.
Similar to Bitcoin funds, spot Ethereum ETFs in the US recorded a net inflow of $7.65 million on Oct. 29, according to SoSoValue (a crypto investment research platform). BlackRock’s Ethereum ETF (ETHA) registered an inflow of $13.6 million, while Grayscale’s ETHE saw an outflow of $5.97 million.
The other seven ETH-related products remained stable with no inflows or outflows, indicating a comparatively subdued investor interest in Ethereum.
Oct. 29 Spot ETH ETFs inflows. | Source: SoSoValue
Bitcoin Price Nears All-Time High
BTC also recorded a 1.8% price increase on Tuesday, bringing its weekly gains to 9.6% and further fueling market optimism. At the time of writing, Coingecko data indicates that BTC trades at $71,980 after briefly surpassing $73,500 on Oct. 29.
BTC 24-Hour Price Chart, Oct. 30 | Source: CoinGecko
Notably, BTC’s price rally is boosting the entire crypto market, with global crypto market capitalization reaching $2.53 trillion, according to CoinGecko data. The bullish outlook (based on increased Bitcoin ETF inflows and the imminent US elections) could see Bitcoin price surpass its previous highs.