Key takeaways
- Investors flocked to US Bitcoin ETFs on Tuesday, pouring in a record $870 million.
- This rise coincided with Bitcoin’s 7% weekly gain, propelling the crypto above the $73,000 mark.
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U.S. spot Bitcoin ETFs saw a massive net inflow of $870 million on Tuesday, the largest single-day inflow since June 4, according to data from Farside Investors. The stellar performance came on the same day that Bitcoin crossed the $73,000 level, marking a 7% increase over the past week, according to CoinGecko data.
BlackRock’s IBIT continued its hot streak, recording a record net inflow of $643 million yesterday. This is the largest net inflow into IBIT since March 12, when Bitcoin neared its all-time high.
According to Bloomberg ETF analyst Eric Balchunas, IBIT trading volume reached $3.3 billion on Tuesday, the highest volume in 6 months. However, this was unexpected since Bitcoin was up 4% that day.
Typically, ETF volume increases during market downturns or crises, he says. explainsuggesting that the high volume could be due to a “FOMO frenzy”, similar to what happened with the ARK Innovation ETF (ARKK) in 2020.
In another article following Tuesday’s surge reports, Balchunas confirmed that investors rushed to buy IBIT due to recent price increases and fear of missing out on potential gains.
Not only IBIT, but other competing Bitcoin ETFs also reported gains yesterday.
Fidelity’s FBTC attracted approximately $134 million in net inflows, while Bitwise’s BITB, Grayscale’s BTC, VanEck’s HODL, and ARK Invest’s ARKB collectively captured over $110 million in net capital.
In contrast, Grayscale’s GBTC saw $17 million in redemptions. The fund still holds around 220,546 BTC, valued at almost $16 billion.
US Bitcoin ETFs May Soon Overtake Satoshi Nakamoto’s Holdings
According to Balchunas, US spot Bitcoin ETFs are poised to surpass Satoshi Nakamoto’s holdings by the end of the year. Currently accumulating around 17,000 BTC per week, these ETFs are expected to exceed 1 million BTC next week, potentially surpassing the 1.1 million BTC estimated by Nakamoto by December.
Despite potential market volatility, Balchunas remains optimistic about the growth trajectory of ETFs.
COUNTDOWN: US spot ETFs are expected to reach 1 million bitcoins held by next Wednesday and surpass Satoshi by mid-December (before their first anniversary, amazing). They added around 17,000 BTC per week. That said, anything can happen, for example a violent sale and all this is delayed although… pic.twitter.com/lsU1xSP2Zd
– Eric Balchunas (@EricBalchunas) October 29, 2024
Bitcoin surpassed $73,500 yesterday, just $170 shy of its previous all-time high, according to CoinGecko data. Bitcoin was trading at $72,200 at press time, up about 1.8% in the past 24 hours.
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