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30/10/24
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BlackRock’s Bitcoin ETF Sees Record $3.35 Billion Trading Surge Amid Speculative Frenzy
Trading activity for BlackRock’s Bitcoin exchange-traded fund (ETF) witnessed a substantial surge on October 29, with daily trading volume soaring to an impressive $3.35 billion. This level marks the highest daily volume recorded in over six months. The uptick in trading has been attributed to panic-driven purchasing of Bitcoin, which is currently priced around $72,390, just shy of its all-time high.
Analysts have noted that the influx of investments is indicative of a speculative frenzy among ETF buyers. Recent data highlighted substantial inflows, with BlackRock experiencing nearly $600 million in new capital on that day alone. Including other spot Bitcoin ETFs active in the U.S., total inflows reached approximately $827 million. Observations suggested that this spike in trading might be fueled not just by new purchasers, but also by increased activity from arbitrage traders.
There is speculation regarding whether the elevated trading volumes across Bitcoin ETFs signify a genuine wave of retail investment or simply transient trading activity. The day marked a significant trading milestone, ranking as one of the largest trading volume days for Bitcoin ETFs since April of the previous year. The total trading volume across U.S.-listed spot Bitcoin ETFs was approximately $4.64 billion, with BlackRock’s offering accounting for about 38% of that total.
Moreover, BlackRock’s ETF, known for its strong liquidity, reported uninterrupted inflows over a twelve-day streak, amassing around $3.20 billion since mid-month. Bitcoin’s recent trading activities have generated heightened interest as it surpassed $70,000, a pivotal price point since it had stabilized in a range between $54,147 and $69,500 for several months. Analysts noted on October 29 that Bitcoin achieved one of its highest daily trading candles in recent history, further intensifying market observations as traders await potential new all-time highs.
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