BlackRock Bitcoin ETF Hits $3.3 Billion Trading Volume, Institutional Investors Leading The BTC Surge

As Bitcoin (BTC) hit the $73000 mark on Tuesday, October 29 day end, falling short of its all-time high (ATH), the Institutional Bitcoin Trust (IBIT) of BlackRock announced that they have reached a trading volume of $3.3 billion, the highest in the last 6 months.

In recent weeks, IBIT has seen a surge in Bitcoin inflows as institutional interest in BTC increased substantially ahead of the US election. The swelled-up trading volume indicates that the crypto market anticipated that Bitcoin would linger near its ATH this week, as historic highs were in sight.

US Bitcoin ETFs inflows rose to $870 million on October 29 and the IBIT of BlackRock emerged had the largest share in it at $640 million. This is the biggest Bitcoin inflow the fund has received since it was launched.

The ETF’s net inflows are now approaching $25 billion, well ahead of Fidelity’s FBTC. This is in line with the ongoing crypto rally that Bitcoin is facing as it surges towards its ATH.

According to ETF Analyst Eric Balchunas BlackRock’s Bitcoin ETF having an unusual trading volume is a critical point in the present market scenario as such high increases in ETF volumes are only seen during downturns. As per Balchunas, this unusual surge in the trading volume of BTC ETFs is probably because of institutional push originating from the fear of missing out.

It’s not just BlackRock, other Bitcoin ETFs are also witnessing a surge in trading volumes as the digital asset targets record levels. This could be a signal that crypto investors are confident about BTC. ETF surge surge could also because of the fear of uncertainty as the market is likely to change after the November 5, US election.

The rise in inflows recently suggests that institutions are strongly supporting Bitcoin's potential for growth. We have seen how retail investors drove BTC towards record gains in the last cycles and now large investors are leading the pack.

The most crucial market signal of this is the Bitcoin MVRV ratio which has gone past the 365-day average. If the retail investors’ fear of missing out kicks in, then Bitcoin could possibly surge above previous highs.

As of October 30 evening, Bitcoin is trading at $71,928, down 1% in the last 24 hours while its trading volume has decreased by 9% to reach $48.62 billion. BTC’s market capitalization stands at $1.42 trillion, going down by nearly 1% in the last 24 hours.