BlackRock’s IBIT Sees $3.35 Billion Trading Surge, Bitcoin ETFs Inflow Details

BlackRock’s IBIT, one of the leading Bitcoin ETFs, experienced a massive trading volume surge on October 29, reaching $3.35 billion, marking its highest level in over six months. This dramatic increase in activity came as Bitcoin prices rose to $72,390, putting it just a fraction below its all-time high. Bloomberg ETF analyst Eric Balchunas attributed the surge to a wave of panic buying as investors rushed to buy into Bitcoin’s recent rally.

According to Balchunas, a “FOMO frenzy” appears to be in effect, with IBIT leading the pack. His observations on X noted that IBIT’s daily inflows alone reached $599.8 million, contributing to a combined total of $827 million across the eleven spot Bitcoin ETFs available in the U.S. This uptick has sparked debate among analysts over whether the increased volume is a sign of retail excitement or an uptick in high-frequency trading.

Bitcoin ETFs Volume Surges

Eric Balchunas speculated that the volume spike could be due to two forces: FOMO-driven buying or a surge in arbitrage trading by high-frequency traders. Across the board, Bitcoin ETFs saw elevated activity, with Galaxy Digital’s head of research, Alex Thorn, pointing out that October 29 was the third-highest trading volume day for Bitcoin ETFs since April of this year.

The day’s combined volume for U.S. spot Bitcoin ETFs totaled $4.64 billion, with IBIT accounting for the lion’s share, while the Grayscale Bitcoin Trust (GBTC) saw inflows of $390.3 million, the second-highest volume among all Bitcoin ETFs.

Though high trading volume typically signals heightened market activity and liquidity, it does not necessarily mean new money is entering the ETF market.

Bitcoin Rallies as ATH Approaches

Bitcoin’s recent price action has kept traders and analysts on edge. The cryptocurrency surged past $70,000 for the first time since early June, closing in on its historical peak. Crypto analyst Matthew Hyland noted that October 29 marked Bitcoin’s second-highest daily candle in its history, a signal of strong bullish momentum.

Since the Bitcoin halving in April, Bitcoin’s price has mostly ranged between $54,147 and $69,500. However, recent gains suggest a breakout could be imminent, attracting both institutional and retail investors back into the market. BlackRock’s ETF, with 12 consecutive days of inflows totaling $3.2 billion since October 10, appears to be capturing the excitement surrounding Bitcoin’s recent price movements.