BlackRock’s IBIT ETF Hits $3.3 Billion in Single-Day Trading Volume Amid FOMO Surge

• IBIT’s $3.3 billion volume surge signals FOMO-driven inflows amid Bitcoin’s 4% price rise.
• The October 29 turnover breaks the pattern, marking a high-volume day without a market downturn.
• Short-term activity spikes in IBIT as the 50-day moving average rises, while the 200-day remains stable.

BlackRock’s Bitcoin Spot ETF, listed as IBIT, recorded an impressive $3.3 billion in daily trading volume on October 29, 2024. This activity follows a 4% rise in Bitcoin’s value, marking an atypical volume peak for a day without a market downturn or crisis, which usually prompts higher trading in ETFs. 

Bloomberg ETF analyst Eric Balchunas highlighted that this increase could be driven by a FOMO (Fear of Missing Out) frenzy, potentially sparking further inflows.

The October 29 surge breaks from the usual pattern of ETF trading, where high turnover typically accompanies market downturns or periods of uncertainty. While similar volume spikes were seen earlier in 2024, particularly with funds like ARKK during 2020’s bull run, the recent spike in IBIT’s volume aligns with Bitcoin’s price upswing. 

According to Balchunas, the volume observed on October 29 was likely fueled by a wave of new investors entering the market, with expectations of seeing similar large inflows over the coming days.

An examination of IBIT’s trading volume from April 29, 2024, to October 29, 2024, reveals multiple peaks, with the most substantial activity occurring in July and October. The most turnover of $3.344 billion starkly contrasts the six-month low of $412.242 million recorded on September 10, 2024. 

Source:  Eric Balchunas

The average daily turnover was approximately $981.8 million throughout this period, indicating that the October 29 spike was well above typical trading levels. Such fluctuations suggest a broader trend in Bitcoin ETF interest, with periodic spikes potentially driven by Bitcoin’s price movements or investor reactions to market events.

Overlaying two key moving averages on the chart, a 50-day and a 200-day average provides additional insight into trading dynamics. The 50-day moving average has recently started an upward trend, suggesting a short-term increase in trading activity for IBIT.

In contrast, the 200-day moving average remains stable, indicating that while recent activity has surged, long-term trading trends have shown consistency.