BlackRock’s Bitcoin ETF Shatters Records with $4 Billion Trading Volume

BlackRock’s spot Bitcoin ETF, also known as IBIT, dominated trading volume on November 6 with over $4 billion worth of shares traded during the day, according to data from Coinglass.

While the trading volume was impressive, IBIT reported a daily outflow of $69 million, followed by additional outflows earlier in the week.

According to Bloomberg analyst Eric Balchunas, the record-breaking trading volume surpassed the daily trading volume of major stocks like Berkshire Hathaway, Netflix, and Visa. The ETF’s price was also up 10% during yesterday’s trading session.

“It was also up 10%, its second best day since launching. Some of this will convert into inflows likely hitting Tue, Wed night,” he said.

BTC ETFs Hit It Big

The IBIT fund hit $1 billion in trading volume within the first 20 minutes of trading yesterday, Balchunas said in an earlier post on Wednesday.

The spike was comparable to October 30 when a similar surge in trading volume preceded massive inflows into IBIT, Balchunas noted. The fund alone raked in around $1.8 billion in investments over the next few days.

$IBIT just had its biggest volume day ever with $4.1b traded.. For context that’s more volume than stocks like Berkshire, Netflix or Visa saw today. It was also up 10%, its second best day since launching. Some of this will convert into inflows likely hitting Tue, Wed night pic.twitter.com/vy2zJBwaHd

— Eric Balchunas (@EricBalchunas) November 6, 2024

While not guaranteeing a similar outcome, he suggested that the current pattern matches historical trends, which could potentially lead to substantial inflows into IBIT.

However, despite the impressive trading activity, the IBIT fund reported around $69 million in net outflows at market close yesterday, according to Farside Investors data. That also marked its largest ever daily outflow.

So far this week, IBIT shed around $113 million. Yesterday’s loss followed $44 million in outflows reported on Tuesday, data shows. However, it still dominates the Bitcoin ETF market with around $26 billion worth of net capital.

The fund has been rapidly gaining ground on Grayscale’s Bitcoin Trust (GBTC), which has historically been the dominant player in the Bitcoin ETF space. As of recent reports, GBTC has hold around 218,765 BTC, valued at $16 billion at current prices, while IBIT’s holding stands at 433,644, worth around $30 billion.

Spot Bitcoin ETFs Reverse Trend

Despite IBIT’s outflows, the group of US spot Bitcoin ETFs secured a winning day. Data shows that these funds collectively netted $621 million, reversing a negative trend that had been ongoing for the last three days.

Fidelity’s FBTC led inflows with $309 million in net buying. The fund has hit $1.5 billion in net inflows since its debut. ARK Invest/21Shares’ ARKB attracted $127 million in new investments, while Grayscale’s BTC recorded $109 million. Bitwise’s BITB attracted $101 million.

Other funds also showed positive flows, with Grayscale’s GBTC recording $31 million in net inflows and VanEck’s HODL adding $17 million.

Bitcoin was up big on the Trump win, and given the size of the move, there may be more upside coming.

IBIT’s record trading volume and massive Bitcoin ETF inflows came as the election results rolled out. Donald Trump has won the election against Kamala Harris, who was the Democratic candidate selected after President Joe Biden’s withdrawal.

As Trump is poised to take over the American leadership, crypto community members hope for a pro-crypto administration which may introduce favorable regulations that encourage crypto investments and foster the safe growth of the industry.

The election outcome is expected to attract more institutional investors to crypto ETFs, as confidence in regulatory clarity and support grows. Analysts expect that a Trump administration could facilitate greater mainstream acceptance of cryptocurrencies, thereby boosting inflows into Bitcoin and Ethereum ETFs.

Likewise, crypto investors see favorable election outcomes for pro-crypto candidates could lead to long-term growth in the cryptocurrency market, which could solidify Bitcoin’s position as a legitimate asset class. With all the buying, it would be easy for BTC to hit $80,000 before the end of the year.

Bitcoin’s price surged to a high of $75,000 during the recent U.S. elections. At the time of reporting, it was trading at around $74,800, down slightly over the past 24 hours, per CoinGecko.