Bloomberg Analyst Attributes Surging Bitcoin ETF Inflows to FOMO Frenzy

Spot Bitcoin (BTC) exchange-traded funds (ETFs) have performed well in recent weeks, with consecutive inflows attributed to the recent surge in Bitcoin prices. At press time, these ETFs had $72.55 billion in net assets, equivalent to 5% of Bitcoin’s total market capitalization. 

On October 29, BlackRock’s iShares Bitcoin Trust (IBIT) ETF had its best day in terms of trading volumes in six months after recording $3.3 billion in value traded. During the day, the IBIT ETF posted $642M in inflows. 

The other Bitcoin ETFs also saw positive flows, apart from the Grayscale Bitcoin Trust, which had $17M in outflows. Fidelity and Bitwise saw $133M and $52M inflows, respectively, while VanEck and Ark Invest posted $16M and $12M inflows.

The total inflows by the US spot Bitcoin ETFs reached $870M, marking the highest inflows since June.

According to Bloomberg ETF analyst, Eric Balchunas, the spike in volumes for BlackRock’s IBIT ETF was “a bit odd” given the slight gains in Bitcoin prices, Therefore, the high volumes could be a result of “FOMO-ing frenzy.” 

“IBIT is not alone – although by far the most – as all the main BTC ETFs saw elevated volumes in the past two days. If this is a FOMO Frenzy, we’ll see it show up in the flows next few nights,” Balchunas said.

Bitcoin ETFs Hit a Milestone

The inflows to spot Bitcoin ETFs have made these products hit a crucial milestone. Following Tuesday’s massive trading volumes, these products have 995,663 coins. 

These ETFs are now inching closer to surpassing the total assets held by the pseudonymous Bitcoin creator Satoshi Nakamoto. Nakamoto holds 1.1M Bitcoin, and if these inflows continue, the products could cross the 1M mark by the end of the week. 

Balchunas noted that the Bitcoin ETFs had a “legit shot” of surpassing Satoshi’s holdings by the end of November. 

The BlackRock Bitcoin ETF has also surpassed another milestone after hitting $30 billion in assets after the recent inflows following the recent price surge. The analyst stated that the product reached the $30 billion mark in under 300 days, marking a record high. 

Data from the IBIT website shows that the product holds around 417,000 coins, making it one of the largest Bitcoin holders. 

Bitcoin traded at $71,953 at press time after a slight 0.7% gain in 24 hours. In the last seven days, Bitcoin has gained by around 8%.