- BlackRock’s iShares Bitcoin Trust records $4.5 billion trading volume, highlighting major activity in companies holding Bitcoin reserves.
- Since their inception, 12 Bitcoin-based ETFs have garnered over $26 billion, significantly influencing BTC’s price surge.
As Bitcoin approaches the $90,000 mark, investor sentiment is soaring, with bullish expectations significantly impacting the market.
In the United States, Bitcoin Exchange-Traded Funds (ETFs) witnessed an impressive influx of more than $1.1 billion yesterday, marking the second-highest entry since their market debut in January 2024.
Among the noteworthy developments, BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest fund, set a new record with a trading volume of $4.5 billion.
The Bitcoin Industrial Complex (ETFs + MSTR, COIN) saw $38b in trading volume today, lifetime records being set all over the place, incl $IBIT which did $4.5b, which points to a robust week of inflows. Just an insane day, it really deserves a name a la Volmageddon pic.twitter.com/rcOLs0MhNF
— Eric Balchunas (@EricBalchunas) November 11, 2024
According to Eric Balchunas, an ETF specialist at Bloomberg Research, there was also a significant trading volume involving the stocks of MicroStrategy (MSTR) and Coinbase (COIN), two companies that hold Bitcoin as a reserve of value.
“Yesterday’s trading volume was $38 billion, an all-time high across the board,” Balchunas noted, describing the day as exceptionally hectic.
This high volume of trading reflects institutional investors’ interest in ETFs, driven by strong bullish expectations in the market following the election of Donald Trump as President of the United States. Specifically, on November 7, the BlackRock ETF reported a record-breaking $1.1 billion in net inflows.
Since their launch, the 12 Bitcoin-based ETFs have accumulated more than $26 billion in revenues. The robust performance of these financial instruments has pushed BTC’s price above $89,000, reaching a new historical high. At the time of this report, the digital asset is priced at $87,220.
As explained by ETHNews, cash inflows into spot ETFs have a direct impact on the digital currency’s price. Due to their structure, the managing firms must hold Bitcoin in their treasuries to back their shares. When ETF demand increases, these companies must buy more Bitcoin from the market, which drives up the asset’s price.
In Hong Kong, ETFs recorded their highest trading volume of over $14 million. According to SosoValue data, the three Bitcoin-based funds in the region saw more than $3 million in entries, the highest since August 22.
Alex Tseng, head of sales operations at digital assets firm OSL, told The Block that:
“The surge in trading activities reflects a stronger market sentiment, as traders look to capitalize on favorable conditions following political events and post-election clarity in the U.S., along with broader cryptocurrency adoption.”
The current price of Bitcoin (BTC) is $86,364 USD, showing a decrease of 2.71% today.
Key Observations:
- Price Movement: Bitcoin has seen a slight decline today after a strong rally over the past month, where it gained 36.53%. Despite this pullback, Bitcoin remains significantly up for the week (+27.22%) and year-to-date (+104.16%), indicating strong overall bullish momentum.
- Market Capitalization: The current market cap of Bitcoin is $1.71 trillion USD, with a robust 24-hour trading volume of $159.24 billion USD. The high volume suggests active trading, which could lead to continued volatility in the short term.
Technical Analysis
Bitcoin is approaching key support around the $85,000 USD level. If it breaks below this level, we could see further declines as traders take profits. However, if it holds this support, the next resistance level to watch is around $90,000 USD. A breakout above this could pave the way toward the psychological milestone of $100,000 USD.
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