IBIT Bitcoin ETF sees record turnover of $3.3 billion as interest intensifies amid a BTC rally.
50-day and 200-day moving averages indicate an upward trend in Bitcoin ETF trading volume.
Surge in IBIT trading suggests heightened market sentiment and possible FOMO effect.
October 29, 2024, marked a standout day for IBIT, a prominent Bitcoin ETF, as it recorded a massive turnover of $3.3 billion. The surge represents the highest traded value for IBIT in the last six months, drawing considerable attention from market watchers.
A senior ETF analyst, Eric Balchunas highlighted this increase, noting it could indicate a growing “fear of missing out” (FOMO) among investors. Typically, ETF trading volumes spike during market downturns or crises, but this recent rise in IBIT turnover occurred against a 4% rally in Bitcoin prices, suggesting a different pattern is at play.
https://twitter.com/EricBalchunas/status/1851381046501392574
This recent turnover surge aligns with a broader uptick in Bitcoin ETF activity, with IBIT leading a trend of high trading volume across other Bitcoin-based funds. Balchunas observed that similar patterns have, in the past, preceded substantial inflows, particularly in cases where volume spikes amid price rallies.
Following previous trading volume surges, IBIT saw inflows of $1.8 billion over a few days, hinting that recent movements could signal incoming inflows if the current trend continues.
Analyzing the turnover data reveals a marked increase over the previous six months, as shown in a recent turnover chart. The daily intervals indicate multiple peaks, with the latest spike to $3.3 billion creating a sharp peak on the chart’s right side.
Source: Eric Balchunas
This high trading activity points to heightened investor interest, potentially driven by market news, significant developments, or shifts in market sentiment.
Two key moving averages, the 50-day and 200-day, provide additional context for this trend. The 50-day moving average for IBIT turnover is approximately $1.033 billion, while the 200-day average is slightly higher at $1.107 billion.
The relative stability of the 50-day average, alongside the recent uptick in the 200-day average, suggests a longer-term rise in IBIT trading volume. This trend indicates that investor interest in IBIT and similar funds has been gradually building, with the latest activity representing a culmination of this increasing attention.
Moreover, IBIT saw its lowest trading volume at $412 million. Comparing this low point to the current turnover peak underscores the rapid growth in trading volume within a short period.
As Bitcoin prices surged, this increase in IBIT turnover suggests a shift in investor behavior, with trading patterns pointing toward potential FOMO-driven buying activity.
Balchunas further commented that while high-frequency arbitrage trading could contribute to elevated volumes, broad trading spikes across several Bitcoin ETFs support the notion of intensified interest from individual investors.
The market will closely monitor flow data over the coming days to determine if this heightened trading is purely an arbitrage effect or indicative of broader inflows fueled by strong sentiment surrounding Bitcoin’s recent price performance.
