The spot Bitcoin exchange-traded funds (ETFs) launched earlier this year after securing approval from the U.S. Securities and Exchange Commission have surpassed $23 billion in total inflows, with these funds seeing their third-highest daily inflows after BTC’s price topped $72,000.
According to a recent Bloomberg report these funds, which include BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC), saw a $870 million net inflow after the cryptocurrency’s price surged.
Bitcoin is at the time of writing trading at $72,400 after moving up more than 9% over the past week, to now have a $1.43 trillion market capitalization. Its performance has seen IBIT, the leading spot Bitcoin ETF, trade $3.3 billion in a single day.
The trading volume struck Bloomberg senior ETF analyst Eric Balchunas as “odd” as it came during a BTC price rather, while typically volumes for ETFs surge during downturns, although “volume can spike if there’s a FOMO-ing frenzy,” referring to investors being affected by fear of missing out (FOMO).
$IBIT traded $3.3b today, biggest number in 6mo, which is a bit odd bc btc was up 4% (typically ETF volume spikes in a downturn/crisis). Occasionally tho volume can spike if there a FOMO-ing frenzy (a la $ARKK in 2020). Given the surge in price past few days, my guess is this is… pic.twitter.com/z44ZfggHVm
— Eric Balchunas (@EricBalchunas) October 29, 2024
Some analysts attribute Bitcoin’s recent price rises with U.S. Presidential candidate Donald Trump leading in election markets when it comes to election odds. Trump has taken a pro-crypto stance during this election cycle, going as far as saying there’s never been anything like Bitcoin.
In a speech at a Bitcoin conference earlier this year, Trump claimed Bitcoin will one day probably surpass the market capitalization of gold, and added he intends for every BTC to be mined in the United States to make the country the “Bitcoin superpower of the world.”
Despite Trump’s lead on election markets, polls show a tight race against Vice President Kamala Harris, who has also said she would support a regulatory framework for the cryptocurrency industry.
Featured image via Unsplash.
