U.S. spot Bitcoin exchange-traded funds (ETFs) surged on Monday, Nov. 6, reversing a three-day decline with approximately $621.90 million in net inflows, lifting crypto market sentiment. This positive shift occurred despite BlackRock’s iShares Bitcoin Trust (IBIT) facing its largest single-day outflow, recording a $69.11 million net withdrawal. Valkyrie’s BRRR ETF saw a smaller outflow of $2 million. The reversal starkly contrasts IBIT’s robust start earlier this year, when it saw over a billion dollars traded within the first 20 minutes of launch.
IBIT Trading Spike
Nonetheless, the outflow of the funds and IBIT trading operations increased significantly. According to Bloomberg ETF analyst Eric Balchunas, IBIT trading has been at its peak on Monday. The total trading reached $4.1 billion, higher than some of the biggest stocks in the market, such as Berkshire Hathaway, Netflix, and Visa. According to Balchunas, high volume does not always imply positive inflows that it includes both buying and selling activities.
$IBIT just had its biggest volume day ever with $4.1b traded.. For context that’s more volume than stocks like Berkshire, Netflix or Visa saw today. It was also up 10%, its second best day since launching. Some of this will convert into inflows likely hitting Tue, Wed night pic.twitter.com/vy2zJBwaHd
— Eric Balchunas (@EricBalchunas) November 6, 2024
In a larger context, Fidelity’s FBTC ETF was the biggest recipient of inflows for the day, with $308.77 million in net purchases. ARK Invest’s ARKB ETF came second with $127 million. Grayscale’s BTC fund also had a good day with net inflows of $109m, this was the second largest single day of inflows since its launch. Bitwise’s BITB ETF had its best day since February, attracting $100.92 million. While Grayscale’s flagship GBTC fund raised $30.91 million, VanEck’s HODL ETF attracted around $17 million of new investments.
Bitcoin Hits New All-Time High; Gold and Silver Prices Drop
Ether ETF Gains
Spot Ether ETFs in the U.S. also posted its highest daily gain in six weeks as the post-election rally continued in the crypto market. Ether funds received net inflows of $52.3 million on Nov 6. The largest Ethereum-based investment product, the Fidelity Ethereum Fund, attracted $26.9 million, with the Grayscale Ethereum Mini Trust bringing in $25.4 million.
Even though Ether ETFs are still a net negative in terms of total due to long-term redemptions, the Monday jump proves that the sector is back in business. Crypto ETFs are all set to receive investor interest as more favorable policies are expected in the future. The investments are positive signals for the market, and industry players are encouraged by this development.
