Bitcoin ETFs Surge with Record Inflows as Price Nears All-Time High

Spot Bitcoin ETFs listed in the U.S. recorded net inflows exceeding $870 million on Oct. 29, marking one of the highest inflow days since these products first launched in January. 

Among the ETFs, BlackRock’s IBIT led the charge with over $629 million in net inflows, according to data from SoSoValue. 

Following closely were Fidelity’s FBTC, which attracted $133 million, and Bitwise’s BITB, bringing in $52 million. Other notable funds included Grayscale’s mini Bitcoin trust (BTC) at $29 million, VanEck’s HODL at $16 million, and Ark’s ARKB at $12 million. 

Grayscale’s flagship Bitcoin trust (GBTC) was the only fund to experience outflows, totaling $17 million.

The overall trading volume for Bitcoin ETFs reached an impressive $4.75 billion, the highest level since March. IBIT alone accounted for $3.3 billion of this total. 

Market Dynamics Ahead of the U.S. Elections

The influx of capital into Bitcoin ETFs coincided with Bitcoin's price, which approached $73,500, just shy of its all-time high. Market participants are aware that the upcoming U.S. elections could introduce volatility. Some traders are targeting an $80,000 price level in November, with options trading reflecting a surge in demand for this bullish sentiment.

Eric Balchunas, an ETF analyst at Bloomberg, noted that this rise might indicate a “FOMO frenzy,” akin to the behavior seen with the ARK Innovation ETF in 2020.

"If this is a FOMO frenzy, we’ll see it show up in the flows over the next few nights," he stated. 

Alternatively, if the surge is due to high-frequency trading, it may not indicate fresh capital entering the market.

Galaxy Digital’s head of research, Alex Thorn, supported this observation, mentioning that October 29 marked the third-highest trading volume day for Bitcoin ETFs since April 1, 2024. 

Implications for Future Growth

Over the past twelve days, IBIT has maintained an unbroken inflow streak, accumulating around $3.2 billion since October 10. 

Interestingly, the U.S. Bitcoin ETFs are on track to surpass the holdings of Bitcoin’s mysterious creator, Satoshi Nakamoto. Current trends suggest that these ETFs could accumulate approximately 17,000 BTC weekly, potentially exceeding 1 million BTC by the end of the year. 

Balchunas predicts that this milestone could be achieved by December, overtaking Nakamoto's estimated holdings of 1.1 million BTC.