As a seasoned analyst with over two decades of experience in the financial markets, I can confidently say that the recent surge in trading volume for BlackRock’s Bitcoin ETF is more than just a casual uptick. With my keen eye for market trends and my nose for identifying speculative frenzy, I wholeheartedly agree with Eric Balchunas’ assertion that FOMO (Fear of Missing Out) among ETF buyers has been confirmed.
On October 29, the daily trading volume for BlackRock’s Bitcoin exchange-traded fund (ETF) reached an impressive peak of $3.35 billion – a figure not seen in over half a year.
One ETF analyst believes the spike in trading volume is driven by panic buying of Bitcoin (BTC), which is currently trading for $72,390 — only a 2% move away from reaching a new all-time high.
Speculative frenzy among ETF buyers confirmed, suggests analyst
“FOMO confirmed,” Bloomberg ETF analyst Eric Balchunas said in an Oct. 29 X post citing data showing BlackRock daily inflows clocked $599.8 million.
As a researcher delving into the realm of digital currencies, I’ve just found that cumulative investments in the eleven Bitcoin Exchange-Traded Funds (ETFs) operating within the U.S. market amounted to approximately $827 million on the given day, based on data provided by CoinGlass.
Balchunas’ assertion emerged mere hours following his contemplation over whether the substantial Bitcoin ETF trading volumes could represent an influx of speculative investors or simply increased activity by arbitrage traders.
If the current situation resembles a ‘fear of missing out’ (FOMO), then we might notice this in the data over the coming nights. However, if it doesn’t, it could be due to high-frequency arbitrage trading or similar activities, as he suggested.
IBIT is not the only one experiencing high volume – it’s the most prominent, but all major Bitcoin ETFs have seen increased trading activity over the past two days,” Balchunas noted.
Alex Thorn, head of research at Galaxy Digital, highlighted that on October 29th, Bitcoin ETF trading volumes ranked as one of the top three busiest days for such transactions since April 1, 2024.
On October 29th, U.S.-listed Bitcoin ETFs collectively traded a total volume of approximately $4.64 billion. Among these, IBIT accounted for roughly 38% of the trading activity.
On a given day, the Grayscale Bitcoin Trust (GBTC) contributed the largest amount of volume with an inflow of approximately $390.32 million to IBIT.
An elevated trading volume suggests a high level of market fluidity and active trading within the ETF, yet it doesn’t necessarily mean that fresh investments are being poured into the funds.
BTC is on the brink of tapping its current ATH
Over the past twelve days, there’s been a continuous stream of new capital flowing into the ETF, as indicated by data from Farside. This inflow has totaled approximately $3.20 billion, starting from the zero-net flow day on Oct. 10.
On October 29, Bitcoin surpassed $70,000 for the first time since June 6, a significant milestone in its price chart that has attracted close attention from traders.
After the Bitcoin halving in April, its price has been fluctuating within a band of roughly $54,147 to $69,500.
crypto expert Matthew Hyland noted that on October 29th, Bitcoin formed one of its second largest single-day candles in its entire history.
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2024-10-30 06:59