SUMMARY
- BlackRock’s IBIT recorded $872 million in net inflows yesterday, marking its highest since inception.
- Bloomberg analyst Eric Balchunas noted that spot bitcoin ETFs may soon collectively hold more bitcoin than Satoshi Nakamoto.
BlackRock’s iShares Bitcoin Trust (IBIT), the largest U.S. spot bitcoin exchange-traded fund (ETF) by resources, stamped a noteworthy $872 million net inflow on Wednesday. This broke the past record set in March and reflects developing interest in bitcoin ETFs, especially with the U.S. election nearing. Analysts cite possible variables like central banks decreasing interest rates globally, and expanding investor access to capital. BTCMarkets’ Rachael Lucas attributes IBIT’s success mostly to anticipation around a pro-crypto U.S. election result, including that volatility may rise as the election continues to unfold and that financial markets may remain uncertain.
Spot bitcoin ETFs in the U.S. saw $893 million in net inflows on Wednesday. BlackRock’s IBIT led with $872 million, followed by Fidelity’s FBTC at $12.57 million, whereas smaller inflows were recorded across Ark Invest, 21Shares, VanEck, and Invesco funds. The day saw $23.89 million flow out of Bitwise’s BITB fund, whereas Grayscale’s GBTC and three others recorded no inflows. This brings the ETFs’ cumulative inflows to $24.18 billion, with a daily trading volume of $1.97 billion, a plunge from $4.75 billion the earlier day.
Investor certainty in BTC ETFs is anticipated to increase a lot more ahead of the Nov. 5 presidential election, as traders see to hedge against potential shifts in policy. Former President Donald Trump, who has voiced support for crypto, leads on crypto betting platforms, whereas Vice President Kamala Harris has a slight polling edge on FiveThirtyEight’s aggregate. Lucas anticipates increased volatility, noting how the election period brings speculation and market adjustments.
According to Bloomberg analyst Eric Balchunas, the recent surge in ETF inflows may make U.S. spot bitcoin ETFs the biggest holders of bitcoin globally, surpassing Satoshi Nakamoto’s evaluated 1.1 million BTC holdings. Balchunas noted organization interest is presently overwhelming retail involvement, possibly reaching 40% of total spot ETF possessions within the year.
On the ether front, spot Ether ETFs also experienced net inflows of $4.36 million. Fidelity’s FETH led with $5.32 million, whereas 21Shares’ CETH recorded $2.66 million in inflows, balanced by $3.63 million outflows from Bitwise’s ETHW fund. Ether ETFs saw a collective trading volume of $220 million on Wednesday, demonstrating steady demand despite volatility and a broader focus on bitcoin in recent days.