Bitcoin Spot ETFs See Historic Net Inflow of $893M, Second Only to March Record

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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October 30, 2024

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Spot Bitcoin exchange-traded funds (ETFs) in the U.S. saw an impressive $893.21 million in net inflows on Wednesday, marking the second-highest total on record.

BlackRock’s iShares Bitcoin Trust (IBIT) led the way, recording over $872 million in net inflows—the highest single-day total since its launch in January and a figure that surpasses the previous record set on March 12, according to data from SoSoValue.

Analysts attribute this surge in capital to favorable market conditions and political factors that are influencing investor sentiment.

More Funds See Positive Flows

Besides BlackRock’s IBIT, several other U.S.-based Bitcoin spot ETFs experienced smaller but positive inflows.

Fidelity’s FBTC recorded $12.57 million in new investments, while Ark Invest and 21Shares’ ARKB, VanEck’s HODL, and Invesco’s BTCO each attracted under $8 million.

In contrast, Bitwise’s BITB fund reported a net outflow of $23.89 million, and Grayscale’s GBTC was among the funds recording no change.

Total trading volume for these Bitcoin ETFs reached $1.97 billion, though this represented a decrease from the previous day’s volume of $4.75 billion.

Nevertheless, the strong inflows on Wednesday elevated the cumulative net inflows for U.S. Bitcoin ETFs to $24.18 billion, underlining a continuing robust interest in digital asset funds.

Market observers believe the upcoming U.S. presidential election on November 5 is adding momentum to Bitcoin ETF investments, as investors seek a hedge against potential policy changes.

The political landscape also reflects divided expectations, with betting platform Polymarket showing former President Donald Trump in the lead, while polling data from FiveThirtyEight gives Vice President Kamala Harris a slight edge over Trump.

The uncertainty in leadership and policy direction is adding to Bitcoin’s appeal as a relatively stable investment amid potential economic shifts.

Bitcoin’s price movements also reflect market enthusiasm.

As of Wednesday, Bitcoin traded at $72,300, down slightly by 0.28% but still hovering near its all-time high of around $73,500 reached earlier in the week.

The broader market is now looking at upcoming Federal Reserve decisions and major tech earnings reports, scheduled shortly after the election, for further market cues.

Bitcoin Spot ETFs to Surpass Satoshi

Eric Balchunas, Senior ETF Analyst at Bloomberg, said that the substantial inflows into IBIT likely pushed the total Bitcoin holdings across U.S. spot ETFs past 1 million BTC.

He projects that by November’s end, Bitcoin spot ETFs could hold more Bitcoin than any other entity, surpassing the approximate 1.1 million BTC believed to be owned by Bitcoin’s creator, Satoshi Nakamoto.

While Bitcoin ETFs dominated inflows, spot Ether ETFs saw a modest net inflow of $4.36 million, with Fidelity’s FETH leading at $5.32 million.

Despite these positive flows, Ether ETFs’ cumulative trading volume of $220 million on Wednesday fell short of early market expectations.

As reported, Bitcoin spot ETFs also saw record inflows of $870 million on October 29.

Meanwhile, digital asset investment products have seen $27 billion in inflows year-to-date (YTD), nearly three times the previous record of $10.5 billion set in 2021.