The recovery coincides with the biggest one-day withdrawal from BlackRock’s iShares Bitcoin Trust (IBIT) since its inception.
On November 6, US spot Bitcoin exchange-traded funds (ETFs) experienced a sharp recovery, bringing in over $622 million in net inflows and snapping a three-day losing run.
The recovery coincides with the biggest one-day withdrawal from BlackRock’s iShares Bitcoin Trust (IBIT) since its inception.
IBIT saw net outflows of almost $69 million yesterday, according to statistics from SoSo Value, while Valkyrie’s BRRR ETF saw a lower outflow of $2 million.
IBIT Records High Volume of Trades
Given IBIT’s strong start earlier this year, when more over $1 billion worth of shares were exchanged within 20 minutes of launching, the outflows were unexpected.
IBIT saw its greatest trading-volume day on Monday, reaching $4.1 billion, according to Bloomberg ETF analyst Eric Balchunas, despite the withdrawals.
The volume of activity outpaced the daily trading volumes of well-known stocks, like Visa, Netflix, and Berkshire Hathaway.
Balchunas emphasized that because such huge quantities represent both buying and selling activity, they may not always correspond to inflows.
Its strong start earlier this year, with over $1 billion worth of shares trading within 20 minutes of opening, made the outflows from IBIT unexpected.
Despite the withdrawals, IBIT saw a sharp increase in trading activity on Monday, reaching $4.1 billion, its greatest trading-volume day, according to Bloomberg ETF analyst Eric Balchunas.
Major equities including Netflix, Visa, and Berkshire Hathaway saw daily trading volumes that were outpaced by the volume of activity.
Since these huge quantities include both buying and selling activity, Balchunas emphasized that they may not always correspond to inflows.
With almost $309 million in net purchases, Fidelity’s FBTC led the ETF market overall, followed by ARK Invest’s ARKB, which received $127 million.
Significant inflows were also seen by Bitwise and Grayscale, with Grayscale’s Bitcoin bringing in $109 million, the second-largest single-day inflow since debut.
With a $101 million gain, Bitwise’s BITB fund saw its best performance since February.
VanEck’s HODL ETF brought in about $17 million, while Grayscale’s flagship GBTC saw a more modest $31 million in net inflows.
These gains are a reflection of the crypto market’s increased optimism in the face of high trading volumes and investor interest.
ETF inflows have recovered as Trump regains the White House.
The market’s confidence has only grown as a result of the previous president’s campaign pledges, which included support for cryptocurrency miners, a national Bitcoin reserve, and the creation of an advisory group for beneficial regulation.
His win has also raised hopes for more industry-friendly regulations and possible changes to the SEC’s leadership.
Trump’s victory might spark a “golden age” in cryptocurrency, according to Bitwise’s chief investment officer Matt Hougan, who highlights the positive regulatory outlook.
Bitwise has experienced notable success as one of 11 companies to introduce spot Bitcoin ETFs in the United States this year.
The biggest of these, BlackRock’s IBIT, has 429,185 Bitcoin worth $30 billion.
Inflows of $2.2 billion are breaking records for digital asset products.
Investment products for digital assets saw a sharp increase this week, drawing $2.2 billion in inflows, hitting a record $29.2 billion so far this year.
The remarkable surge has caused total assets under management (AuM) to surpass $100 billion for the second time in history, hitting $102 billion, which is comparable to what was observed in early June 2024.
Bitcoin was the biggest winner, taking in the full $2.2 billion inflow, with short-Bitcoin products bringing in an extra $8.9 million.
Germany saw only $5.1 million in inflows, while the U.S. market saw the largest inflows, at $2.2 billion.
