SUMMARY

• BlackRock’s IBIT led Tuesday’s inflows with $642 million, as U.S. spot bitcoin ETFs saw $4.75 billion in trading volume, up from $3 billion the previous day.
• The surge aligns with bitcoin approaching its all-time high, driven by market volatility ahead of the U.S. election.

Bitcoin exchange-traded funds (ETFs) in the U.S. recorded a staggering $870 million in net inflows on Tuesday, stamping the biggest daily figure since June. BlackRock’s IBIT ETF overwhelmed the inflows with $642.87 million, accomplishing its most noteworthy daily intake in over seven months. The total trading volume across all 12 bitcoin ETFs surged to $4.75 billion, a jump from $3 billion the day before, with IBIT alone accounting for $3.36 billion—its largest move since March 14.

Fidelity’s FBTC ETF saw net inflows of $133.86 million, immediately followed by Bitwise’s BITB with $52.49 million. Smaller inflows came from VanEck’s HODL with $16.52 million and Ark and 21Shares’ ARKB with $12.39 million. Five other ETFs recorded no inflows amid the session. According to ETF analyst Eric Balchunas, the spike in IBIT’s trading volume was abnormal, as such movement usually happens when there are market downturns. He credited the increment to potential “FOMO,” driven by Bitcoin’s upward trend, anticipating further inflows as the rally progresses.

Ether ETFs also attracted considerable attention, detailing $7.65 million in daily net inflows. BlackRock’s ETHA was the standout performer with $13.62 million in new investments, whereas Grayscale’s ETHE recorded net outflows of $5.97 million. The total trading volume for spot ether ETFs rose to $280.55 million from $187.49 million the day before, showing developing interest in the cryptocurrency amid market volatility.

Bitcoin’s price climbed by 3% to reach $72,471, with a high of $73,200 earlier in the day, amplifying its seven-day gains to 7.7%. Market analysts recommend that pre-election volatility, combined with the bullish “Trump trade” narrative, is fueling demand. With the U.S. elections only a week away, traders expect noteworthy price developments notwithstanding the outcome, with a lot of traders focusing on $80,000 for Bitcoin by November. Call options at that level have seen increased demand, reflecting solid market estimation for a post-election rally.

The surge in ETF inflows signals developing confidence in bitcoin’s potential. While inflows do not specifically increase the asset’s price, they rather create upward pressure by intensifying demand, progressing market sentiment, and affecting trading behavior. With IBIT driving most of the trading volume, analysts anticipate continued momentum in the days ahead as investors position themselves for further gains.