Bitcoin ETFs Hit Record $1.38B Inflows, Led by BlackRock’s IBIT

Bitcoin ETFs Set New Record with $1.38B Inflows, Led by BlackRock’s IBITOn November 7, 2024, U.S.-listed spot Bitcoin ETFs saw a monumental surge in net inflows, with a record-breaking $1.38 billion entering the market.

This marks the highest single-day influx in the history of Bitcoin ETFs, and it was BlackRock’s IBIT ETF that led the charge.The IBIT Effect: $1.12 Billion in One DayBlackRock’s IBIT ETF accounted for a staggering $1.12 billion of the total $1.38 billion in net inflows on that day, making up over 81% of the total figure.

This incredible surge reversed the previous two days of net outflows, which had totaled $113.3 million. The scale of IBIT’s performance underscored the growing confidence and appetite for Bitcoin exposure via ETFs, particularly from institutional investors.

In addition to IBIT, Fidelity’s FBTC ETF was the second-highest recipient of new inflows, bringing in $190.92 million. This followed a strong performance the previous day, when Fidelity’s ETF had already led the charge with $308.8 million in inflows.

The success of these ETFs reflects both a shift in investor preferences and the broader growing interest in Bitcoin as an asset class.

The Broader ETF Landscape While IBIT dominated the day’s inflows, several other Bitcoin ETFs also saw noteworthy contributions to the total surge:Grayscale Bitcoin Mini Trust (GBTC): $20.38 millionARK & 21Shares’ ARKB: $17.61 millionBitwise’s BITB: $13.36 millionVanEck’s HODL: $4.34 millionValkyrie’s BRRR: $2.17 Million However, four other Bitcoin ETFs reported zero flows on November 7. Despite this, total trading volume across all 12 spot Bitcoin ETFs reached $2.76 billion, which, while substantial, was a notable drop from the previous day’s $6.07 billion in trading activity.

A Perfect Storm: Bitcoin Price Surge and ETF Inflows The record-breaking ETF inflows coincided with Bitcoin’s ongoing price rally. As Bitcoin reached new all-time highs—peaking at $76,872—investors were clearly flocking to Bitcoin ETFs as a safer, more regulated avenue to gain exposure to the asset. As of the time of writing, Bitcoin’s price had retracted slightly to around $76,027.Eric Balchunas, Bloomberg’s ETF analyst, had forecasted significant inflows based on trading volume trends. However, even he was surprised by the scale of the day’s performance. He tweeted that November 7’s $1.38 billion inflow was “by far the biggest one-day flow of any BTC ETF ever.” This underscores the growing appetite for Bitcoin exposure in an increasingly regulated environment.

What’s Driving the Surge? As Bitcoin continues its price discovery phase, traders and analysts are anticipating further significant ETF inflows. The significant uptick in November 7’s numbers might be the result of crypto-native investors transitioning from holding Bitcoin directly to holding Bitcoin ETFs.

With nearly 10 months having passed since the launch of Bitcoin ETFs, it seems that more investors are now seeing these products as a viable, safer alternative to direct ownership.

As crypto trader The Bitcoin Therapist predicted, we may very well see “another massive day tomorrow” as the momentum behind Bitcoin ETFs continues to build.In total, the cumulative net inflows for all Bitcoin ETFs since their inception now stand at $24.79 billion, a clear indication of the growing institutional interest in Bitcoin as a legitimate financial asset.

With Bitcoin’s price continuing to rise and more institutions entering the space, these record-breaking inflows might just be the beginning of a much larger trend.The future of Bitcoin ETFs is looking increasingly bullish—whether you’re in it for the price action or the institutional validation, there’s never been a more exciting time for Bitcoin.