Institutional Bitcoin ETF Trading Hits $7.22B Milestone, What’s Next?

• Institutional interest in Bitcoin ETFs surged, with $7.22 billion traded in a single day.
• BlackRock’s IBIT led trading volumes, accounting for over half of the $7.22 billion.

Institutional interest for Bitcoin ETFs has risen, with trading volumes reaching their highest levels in over 7 months.

The 6th-highest level ever recorded, trading volumes in U.S. spot Bitcoin ETFs peaked on November 11 at an amazing $7.22 billion, according to James Seyffart, research analyst at Bloomberg Intelligence. BlackRock, leading the charge, had IBIT of half of this activity, trading $4.6 billion in shares.

Massive $7.22 billion trading day for the US spot #Bitcoin ETFs. Highest volume day since March 14. And the 6th highest day of all time.

BlackRock's $IBIT lead the way with $4.6 billion followed by Fidelity's $FBTC also squeaking past the $1 billion level https://t.co/1ThfMBz2PD pic.twitter.com/erjYvRe9Ph

— James Seyffart (@JSeyff) November 11, 2024

Bitcoin ETF Trading Volumes Surge Amid Post-Election Crypto Optimism 

Driven by positive crypto sentiment after the U.S. election, this trade surge fits the recent trajectory of Bitcoin. Following Donald Trump’s triumph, market hope skyrocketed, and many saw this as a favorable change for crypto laws.

With Bitcoin’s market cap now exceeding silver, positioning it as the eighth-largest asset in the world, this mood seems to have driven both the price of Bitcoin and ETF trading volumes.

While silver prices dropped by 2%, Bitcoin’s price surged over $88,000 in one day, a 10% rise. Meanwhile, Bitcoin is still strong as of writing; it is swapped hands at about $89,035 and has increased by 9.48% over the last 24 hours and by 29.19% over the 7 days.

On November 11, BlackRock’s IBIT dominated the ETF trading volumes; thereafter, Fidelity’s FBTC, with similarly remarkable activity over $1 billion, followed. With nearly $4 billion in shares traded—IBIT’s highest single-day volume since its introduction—this increase in trading activity tracked a record-setting day for IBIT on the previous Thursday.

Despite $69 million in net withdrawals that day, IBIT’s biggest single-day capital inflow since launch came the next day when net inflows topped $1 billion in a fast turnaround.

Such huge trading volumes, according to analysts, could point to both buying and selling activity. ETF expert Eric Balchunas says that consistent trading over several days is required to evaluate whether net inflows will persist, therefore indicating long-term interest instead of a transient surge.

As Bitcoin confirms its status as a major financial asset, ETF trading is seeing a boom. Apart from surpassing silver in market capitalization, Bitcoin currently lags just globally known giants, including gold, Apple, Microsoft, and Amazon.

Though the market needs more legislative certainty, hope for future crypto-friendly rules is also rising. As we previously noted, Standard Chartered has projected significant price targets for Bitcoin, implying it would reach $200,000 should government policies stay favorable under the incoming government.