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

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

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

Historic Inflows Ahead of Presidential Election

According to data compiled by SoSoValue, the US spot Bitcoin ETFs collectively saw $893.21 million in inflows, their second-highest total day ever, with six additional funds also reporting net inflows. Fidelity’s FBTC received $12.57 million, while Grayscale’s BTC recorded $7.96 million.

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

Interestingly, Bitcoin ETF flows have dwarfed the early performance of the first gold ETF.

The recent surge in inflows to spot Bitcoin ETFs, including BlackRock’s IBIT, could potentially be largely driven by investors’ desire to hedge against economic uncertainties as the US presidential election nears. This period typically stirs market volatility as polling shifts, policy announcements, and debates on digital asset regulation impact investor sentiment.

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

More Room For Growth

Ecoinometrics also stated that Bitcoin stands as a top-performing asset over the past year, with returns trailing only a few standout stocks like Nvidia. Despite gold leading in risk-adjusted performance, BTC shows notable strength across both returns and risk-adjusted metrics.

Historically, Bitcoin’s performance has significantly accelerated after reaching new all-time highs, often doubling its returns in the following three months. The current rally, fueled by steady ETF inflows, indicates positive momentum without signs of overheating. Analysts suggest that Bitcoin still has room to push to a new all-time high.