Home Bitcoin News BlackRock Bitcoin ETF Sees Record $3.3 Billion Volume Amid Growing Institutional FOMO

BlackRock Bitcoin ETF Sees Record $3.3 Billion Volume Amid Growing Institutional FOMO

Bitcoin ETF

The race among Bitcoin exchange-traded funds (ETFs) continues to heat up as the BlackRock Bitcoin ETF (IBIT) posts an impressive $3.3 billion trading volume, marking its highest level in six months. Institutional demand appears to be driving this surge, with BlackRock’s IBIT leading a wave of FOMO-driven inflows, indicating that major investors are moving to capitalize on Bitcoin’s current momentum.

On Tuesday, October 29, Bitcoin ETFs in the U.S. witnessed nearly $870 million in inflows, with IBIT dominating the field by bringing in $640 million of the total. This substantial influx highlights the mounting interest from institutional players as the cryptocurrency market edges closer to Bitcoin’s all-time high.

BlackRock’s IBIT Surpasses Expectations Amid Price Rally

BlackRock’s Bitcoin ETF has continued to outperform, capturing the attention of both market strategists and investors. According to Bloomberg ETF strategist Eric Balchunas, Tuesday’s record-breaking $3.3 billion trading volume for IBIT reflects a shift in investor behavior, with institutions stepping up their Bitcoin allocations as a potential hedge amid macroeconomic uncertainty.

Balchunas highlighted that such a trading volume spike is typically unusual during bull rallies, as high ETF activity often occurs during downturns. The recent surge, however, appears to be driven by FOMO, as Bitcoin’s price gains add urgency for investors seeking to maximize their returns.

Institutional FOMO Pushes Bitcoin ETF Inflows to New Heights

The BlackRock Bitcoin ETF isn’t the only fund experiencing heightened activity; other Bitcoin ETFs also saw a strong uptick in trading volumes, further underscoring the widespread FOMO among institutional investors. With BlackRock’s IBIT now closing in on $25 billion in net inflows since its inception, its market dominance has more than doubled compared to its nearest competitor, Fidelity’s FBTC.

The surge in Bitcoin ETF activity comes amid an 8% rise in Bitcoin’s price over the past week. As of today, Bitcoin is trading around $72,267, roughly 5% below its all-time high. Given this momentum, analysts anticipate that retail FOMO could soon follow the institutional wave, potentially propelling Bitcoin into a new price range.

Will Retail Investors Join the Bitcoin Rally?

While institutions have been the primary drivers of recent inflows, retail interest is notably still lagging. According to crypto analyst Miles Deutscher, Bitcoin’s previous bull cycles were characterized by substantial retail buying, which played a pivotal role in pushing prices to record highs. Currently, large investors and Bitcoin whales are influencing the price action, meaning that a surge in retail participation could take Bitcoin to levels exceeding $100,000.

Bullish Indicators Point Toward Potential All-Time High

One significant metric supporting the bullish sentiment is the Bitcoin MVRV ratio, which compares the current price to the average price at which coins were last moved. This ratio has crossed its 365-day moving average, signaling a “golden cross” that often precedes bull rallies. The combination of this indicator with strong ETF inflows adds weight to predictions of an extended rally.

If retail demand follows the current trend, Bitcoin could see a sustained climb, setting the stage for a potential all-time high. The convergence of whale accumulation, ETF inflows, and macroeconomic factors like the U.S. Federal Reserve’s anticipated rate cut may all contribute to Bitcoin’s upward trajectory in the coming months.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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