High trading volumes reflect heightened investor interest despite the recent trend of net outflows.
Key Takeaways
- BlackRock’s Bitcoin ETF traded over $1 billion within the first 20 minutes on Wednesday.
- Trading volume doesn’t translate directly to net inflows or outflows.
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BlackRock’s spot Bitcoin ETF (IBIT) recorded over $1 billion in trading volume within the first 20 minutes of market opening on November 6, according to Bloomberg ETF analyst Eric Balchunas.
Damn, $IBIT has seen $1b in volume in the first 20min- that’s about what it does in full day. Other bitcoin ETFs in same boat, crazy volume. Set for a record-breaking volume day (and given price is up so much, this is likely feeding frenzy volume vs crisis volume = look for… pic.twitter.com/1gSvV5Lwzo
— Eric Balchunas (@EricBalchunas) November 6, 2024
At the time of writing, over $2.5 billion worth of IBIT shares traded hands, Coinglass data shows. Meanwhile, Fidelity’s FBTC saw around $464 million in volume, followed by Grayscale’s GBTC, per Coinglass.
Trading volume, which represents both buying and selling activity, doesn’t directly translate to net inflows. For instance, of the $4.5 billion in first-day volume for Bitcoin ETFs, only about $600 million constituted actual inflows.
Balchunas suggested that IBIT could end today with huge inflows. Historically, large volume spikes during a rally have often preceded significant inflows into Bitcoin ETFs, the analyst said.
Remember the last time we saw volume spike during a rally? That was a precursor to the recent flow-athon, $IBIT alone took in $1.8b over next few days. Not saying it’s guarantee but i’m fan of patterns and it fits pattern. https://t.co/YbkshZ5lOw
— Eric Balchunas (@EricBalchunas) November 6, 2024
His projection was based on similar patterns observed on October 30, when IBIT’s trading volume surpassed $3.3 billion, which later converted into $643 million in net buying, Crypto Briefing reported. That marked the fund’s heaviest inflow since March 12 when Bitcoin neared $73,000.
According to data tracked by Farside Investors, IBIT shed over $44 million yesterday. US spot Bitcoin ETFs also ended the day with approximately $117 million in net outflows, extending its losing streak to three consecutive days.
The recent spike in IBIT trading comes amid Bitcoin’s price rally to around $74,400, up over 6% in the last 24 hours.
Bitcoin recently established a new record high of $75,358 on CoinGecko. The milestone was achieved against the backdrop of the 2024 US elections, with projections indicating that Donald Trump was set to secure a second term in office.
Trump’s victory was later confirmed as major media outlets, including FOX News, the Associated Press, and NBC, officially declared him the winner of the 2024 election.
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