BlackRock’s IBIT Bitcoin ETF Sees All-Time Inflows of $872 Million, Surpassing Previous Highs

BlackRock’s iShares Bitcoin Trust (IBIT) attracted a record inflow of $872 million on October 30. The latest figure marks the highest single-day inflow since the fund launched in January. The surge came just a day after IBIT’s daily trading volume reached $3.35 billion, hitting its highest level in over six months.

IBIT, which happens to be the largest spot Bitcoin ETF by net assets in the United States, has surpassed its last high of $849 million recorded on March 12.

Historic flows as the presidential election approaches

According to data compiled by SoSoValue, U.S. spot Bitcoin ETFs collectively saw $893.21 million in inflows, their second highest day total on record, with six additional funds also reporting net inflows. Fidelity’s FBTC received $12.57 million, while Grayscale’s BTC recorded $7.96 million.

Next up was ARKB from Ark Invest and 21Shares, which saw $7.18 million in inflows. Invesco’s BTCO also recorded the same amount. Meanwhile, Valkyrie’s BRRR and VanEck’s HODL amassed a modest $6.11 million and $4.07 million in entries on Wednesday.

Interestingly, Bitcoin ETF flows eclipsed the early performance of the top gold ETF.

The recent increase in flows into spot Bitcoin ETFs, including BlackRock’s IBIT, could potentially be largely driven by investors’ desire to hedge against economic uncertainties in the run-up to the US presidential election. This period typically sparks volatility in markets as changes in polls, political announcements, and debates over digital asset regulation impact investor confidence.

Weighing in on these large inflows catalyzed by IBIT, Bloomberg analyst Eric Balchunas predicted that spot Bitcoin ETFs could soon surpass Satoshi Nakamoto’s 1.1 million BTC to become the world’s largest holder. Balchunas also observed a shift from retail to institutional ownership of these ETFs, predicting that institutions could account for 40% of Bitcoin ETF spot investors by next year.

More room for growth

Ecoinometrics also said that Bitcoin was the best performing asset over the past year, with lower returns than a few notable stocks like Nvidia. Although gold leads in terms of risk-adjusted performance, BTC shows notable strength in terms of returns and risk-adjusted metrics.

Historically, Bitcoin’s performance has accelerated significantly after hitting new all-time highs, often doubling its returns over the following three months. The current rally, fueled by steady ETF inflows, indicates positive momentum with no signs of overheating. Analysts suggest that Bitcoin still has room to reach a new all-time high.