BlackRock’s IBIT Bitcoin ETF Sees Historic Inflows of $872M, Surpassing Previous Highs

BlackRock’s iShares Bitcoin Trust (IBIT) attracted a record $872 million in inflows on October 30. The latest figure marks the highest single-day inflow since the fund launched in January. This increase came just one day after IBIT’s daily trading volume rose to $3.35 billion, hitting its highest level in more than six months.

IBIT, which happens to be the largest cash Bitcoin ETF by net assets in the United States, surpassed its last high of $849 million recorded on March 12.

Historic turnouts before the presidential elections

According to data compiled by SoSoValue, U.S.-located Bitcoin ETFs collectively recorded $893.21 million in inflows, the second-highest daily total ever, with six additional funds also posting net inflows. Fidelity’s FBTC received $12.57 million, while Grayscale’s BTC recorded $7.96 million.

Next was Ark Invest’s ARKB and 21Shares, which saw inflows of $7.18 million. Invesco’s BTCO also recorded the same amount. Meanwhile, Valkyrie’s BRRR and VanEck’s HODL amassed a modest $6.11M and $4.07M in admissions on Wednesday.

Interestingly, Bitcoin ETF flows have eclipsed the initial performance of the first gold ETF.

The recent surge in entries to spot Bitcoin ETFs, including BlackRock’s IBIT, could be largely driven by investors’ desire to hedge against economic uncertainties as the US presidential election nears . This period usually leads to market volatility as changes in polls, policy announcements and debates over regulation of digital assets affect investor sentiment.

Given these large flows catalyzed by IBIT, Bloomberg analyst Eric Balchunas predicted that spot Bitcoin ETFs could soon surpass Satoshi Nakamoto’s 1.1 million BTC to become the world’s largest holder . Balchunas also noted a shift from retail to institutional ownership in these ETFs, predicting that institutions could make up 40% of local Bitcoin ETF investors next year.

More room for growth

Ecoinometrics also stated that Bitcoin is the best-performing asset over the past year, with returns trailing some prominent stocks such as Nvidia. Despite gold leading the risk-adjusted return, BTC shows remarkable strength in both returns and risk-adjusted metrics.

Historically, Bitcoin’s performance has accelerated significantly after hitting new all-time highs, often doubling its returns in the following three months. The current rally, fueled by steady ETF inflows, indicates positive momentum with no signs of overheating. Analysts suggest Bitcoin still has room to push to a new all-time high.

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