According to Eric Balchunas, a prominent ETF analyst, BlackRock’s iShares Bitcoin Trust ETF (IBIT) managed to record $1 billion worth of trading volume in just 20 minutes of trading.
The high-flying ETF product is on track to set a new volume record this Wednesday, according to Balchunas.
Typically, ETFs tend to experience strong trading volume dusting major sell-offs. However, this doesn’t seem to be the case this time around.
As Balchunas notes, this is likely just a “feeding frenzy” volume since the Bitcoin price has surged sharply higher.
On Oct. 29, IBIT traded roughly $3.3 billion worth of Bitcoin. This was a precursor to major inflows. Over the next few days, IBIT alone managed to attract $1.8 billion worth of inflows in a relatively short span of time.
Alex DovbnyaGiven that IBIT is currently seeing a record-breaking trading volume, the very same scenario could play out once again. It remains to be seen whether this will be the case in the upcoming days.
“Not saying it's guaranteed but I'm a fan of patterns and it fits the pattern,” he said.
Notably, other ETFs are also seeing significant trading volumes, according to Balchunas.
At press time, Bitcoin is trading at $74,313 on the Bistamp exchange after giving up some of its earlier gains.
As reported by U.Today, Balchunas recently opined that Bitcoin ETFs were attracting fresh money after some naysayers argued that almost all inflows came from centralized cryptocurrency exchanges.
It is worth noting that the Coinbase premium has also returned for the first time in five weeks, which means that Americans are likely leading the current rally.
Vladislav Sopov
U.Today Editorial Team
Dan Burgin