Airdrop Army

BlackRock’s iShares Bitcoin Trust (IBIT) hit a jaw-dropping inflow milestone this Wednesday, amassing over $872 million in net assets, the highest since its January debut. The new inflow benchmark overshoots its March peak and reflects a heightened momentum toward digital assets as both central bank policies and U.S. election uncertainty stir investors’ interest.

Rachael Lucas, crypto analyst at BTCMarkets, attributes the rally to several influences: “Central banks have been leaning towards lower interest rates, making capital more available for investors. Plus, there’s growing anticipation for a pro-crypto win in the U.S. presidential election.”

BTC ETFs See Flood of Cash, Surpassing $24 Billion in Assets

On the same day, U.S. spot bitcoin ETFs cumulatively drew $893.21 million, the second-highest net inflow day. Fidelity’s FBTC gained $12.57 million, while smaller contributions from Ark Invest’s ARKB and VanEck’s HODL added to the bullish trend. In contrast, Bitwise’s BITB recorded a $23.89 million outflow, making it the sole fund to lose funds that day.

With these gains, U.S. spot BTC ETFs now hold a stunning $24.18 billion in assets, though daily trading volumes dropped from $4.75 billion to $1.97 billion. Lucas believes market activity will remain unpredictable: “The pre-election climate is revving up BTC ETFs as investors hedge their bets. It’s a cocktail of volatility.”

Eyes on the All-Time High: Bitcoin Holds Steady

Bitcoin’s price edged slightly down, dipping 0.28% over 24 hours to land at $72,300, though it flirted with the $73,500 mark earlier this week. According to Min Jung of Presto Research, the next critical checkpoint is whether Bitcoin can breach its all-time high. “If it breaks past $73.8K, a rally may follow as those waiting for a breakout will likely flood in.”

But it’s not just BTC holders watching closely; the upcoming Federal Open Market Committee (FOMC) meeting shortly after the U.S. election and big tech’s earnings reports are potential market movers.

BTC ETFs Near Satoshi’s Holdings as Institutions Climb Aboard

Bloomberg’s Eric Balchunas noted that IBIT’s Herculean inflows may push U.S. spot bitcoin ETFs’ holdings past the one million BTC mark, rivaling even Satoshi Nakamoto’s holdings of 1.1 million BTC. What started as a retail buying wave has increasingly shifted to institutional interest, with institutions expected to hold 40% of spot ETF assets within a year.

Ether ETFs Pull Modest Gains

Spot Ether ETFs attracted smaller but positive net inflows, with Fidelity’s FETH leading with $5.32 million. Still, Bitwise’s ETHW saw $3.63 million in outflows, leaving the cumulative trading volume among ether ETFs at $220 million. The crypto landscape is shifting, with BTC leading the charge and institutional eyes now turning sharply on digital assets.