BlackRock Bitcoin ETF Bags $629M Inflow Amid US Election Hype

As Bitcoin (BTC) edges toward historic price levels, BlackRock’s IBIT has drawn massive investor interest. The digital investment product recorded over $629 million in inflows in a single day. 

As the U.S. elections approach and market volatility rise, investors are flocking to Bitcoin Exchange Traded Funds (ETFs), hoping to capture crypto gains. This has led to a surge in crypto trading activity and a fresh wave of Fear Of Missing Out (FOMO) that could drive Bitcoin to new highs.

BlackRock Leads Bitcoin ETF Surge with $629 Million in Inflows

Tuesday marked a significant milestone as BlackRock’s IBIT ETF recorded a staggering $629 million in inflows. This surge contributed to a broader rally in the U.S.-listed Bitcoin ETFs, which saw over $870 million in net inflows. 

This impressive record makes it the third-highest single-day figure seen since Bitcoin ETFs debuted in January. Fidelity’s FBTC came next with $133 million, followed by Bitwise, Grayscale’s Mini Trust, VanEck, and Ark Invest. This shows investors’ strong interest in various funds. While most ETFs saw a wave of new funds, Grayscale’s Bitcoin Trust (GBTC) was the exception, posting $17 million in outflows. 

Despite this, total ETF trading volumes reached an impressive $4.75 billion on Tuesday. BlackRock’s IBIT alone accounted for $3.3 billion of this activity, the highest volume since March. These figures signal robust engagement from traders positioning themselves ahead of possible market swings around the U.S. elections.

Bitcoin Inches Closer to Lifetime Highs

Bitcoin’s price also made significant gains, rising 3% on Tuesday and adding to a weeklong rally of 7.7%. Market sentiment around the digital asset remains optimistic. Some analysts predicted that Bitcoin could reach $80,000 in November, regardless of the election outcome. 

Bitwise CTO Matt Hougan recently shared his insight on the digital asset in an X post. He said it could reach $200,000 without requiring a collapse of the U.S. dollar. Notably, options markets have already seen a rise in demand for this price level. At the time of writing, Bitcoin is trading at $72,187.39, up by 1.03% in the last 24 hours, according to CoinMarketCap data. 

Analysts Weigh In: FOMO Impact Uncovered

Bloomberg ETF analyst Eric Balchunas pointed out the unusual nature of Tuesday’s volume spike. 

He attributed it to a wave of FOMO among investors. Balchunas noted that ETF volume typically spikes during downturns, but this time, the volume surged with Bitcoin’s price rise. He compared this dynamic to the excitement around Ark’s ARKK ETF in 2020. 

Balchunas suggested that the Bitcoin ETF market could see even more dramatic inflows as the week unfolds.