BlackRock’s IBIT set a trading record as Bitcoin ETFs bounced back with significant inflows, while Bitcoin itself climbed to $75,000.
BlackRock’s Bitcoin exchange-traded fund (ETF) recorded a historic trading day on November 6. This comes as pro-crypto Donald Trump’s victory in the US presidential election sent ripples of optimism through the crypto markets.
According to Bloomberg’s ETF analyst Eric Balchunas, BlackRock’s iShares Bitcoin Trust (IBIT) experienced its “biggest volume day ever”, trading over $4.1 billion in daily volume on a single day. This unprecedented surge in trading volume eclipsed daily activity in stocks like Berkshire Hathaway, Netflix, and Visa. This signals heightened interest in Bitcoin as an investment vehicle during a politically favorable moment.
Notably, IBIT’s trading volume wasn’t the only standout performance; several other Bitcoin ETFs also experienced notable spikes, with most funds seeing twice their usual daily volume.
Bitcoin ETFs Inflow
The 11 spot Bitcoin ETFs collectively reported inflows of $621.9 million on Wednesday after three continuous days of outflows. While IBIT’s trading volume soared to historic highs, inflows presented a more nuanced picture. Despite the day’s trading momentum, IBIT actually reported a net outflow of $69.1 million on November 6.
However, Fidelity’s FBTC fund led the charge in terms of inflows, amassing a robust $308.7 million. Other ETFs followed suit, with the ARKB ETF from Ark Invest and 21Shares collecting $127 million in inflows.
ETF Store President Nate Geraci recently noted that Bitcoin BTC $67 883 24h volatility: 1.1% Market cap: $1.36 T Vol. 24h: $35.74 B has been the most dominant ETF asset this year, representing six of the top 10 most successful ETF launches in 2024. Interestingly, Bitcoin ETFs have collectively secured $24.12 billion in net inflows since their launch in January.
The sudden influx points to a renewed bullish sentiment that has sent Bitcoin to a new all-time high of $76,500 before retracing slightly to $75,000.
Bitcoin’s market cap has climbed by 2.3%, reaching approximately $1.48 trillion on November 7. Many analysts and traders anticipate continued price increases as Trump prepares to take office. These optimistic forecasts have driven the Crypto Fear and Greed Index up to 77, reflecting a strong “extreme greed” sentiment among investors.
Altcoins ETFs Ahead?
Buoyed by Bitcoin’s rising popularity, asset management firms are expanding their ETF strategies to include more altcoins. The first one on the list was Ethereum, which already saw the green light from the Securities and Exchange Commission (SEC) in July.
Meanwhile, asset managers are now exploring regulatory filings for altcoin-based ETFs, with Solana, XRP, and Litecoin being prominent candidates. This diversification comes despite the ongoing legal uncertainties surrounding certain cryptocurrencies, such as Ripple’s XRP.
Looking ahead, the market awaits approval on several planned crypto index ETFs, which aim to offer broader exposure by bundling multiple tokens into a single fund. Analysts believe these diversified portfolios could attract investors looking for a safer, well-rounded approach to crypto exposure.
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