BlackRock’s Bitcoin ETF (IBIT) Sets Record With $4B Daily Trading Volume

BlackRock’s iShares Bitcoin Trust (IBIT) recorded its highest-ever daily trading volume of $4.1 billion on Wednesday evening, following Donald Trump’s victory in the United States presidential election.

$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

IBIT saw $1 billion in trading volume within the first 20 minutes of market opening and ended the day up 10%, marking its second-best performance since its debut. According to Bloomberg senior analyst Eric Balchunas, the early surge equaled IBIT’s typical full-day volume, setting the stage for its most robust trading session since launching on January 11.

“That’s more volume than stocks like Berkshire, Netflix, or Visa saw today,” he said.

IBIT’s Market Dominance

Reports indicate that US spot Bitcoin ETFs surged, almost doubling their average daily volume. Following the election results, the sector reached $6 billion in total trading volume, led by IBIT. With about 429,185 BTC valued at $30 billion, IBIT now stands as the largest US-based spot Bitcoin ETF, reinforcing its dominant position in the market.

However, despite the record-breaking volume, IBIT also saw its largest single-day outflow since its inception. On-chain data revealed a net outflow of approximately $69 million for IBIT, while Valkyrie’s BRRR ETF also saw over $2 million in outflows. Despite these withdrawals, US spot Bitcoin ETFs experienced a net inflow of $622 million, reversing a three-day decline.

The total net asset value (NAV) of these ETFs peaked at $76.5 billion, making up 5.08% of Bitcoin’s market value. BTC’s price also reached new heights, surpassing $75,000 following Trump’s win, which further boosted the performance of US-based Bitcoin ETFs.

Trump’s Campaign Promises

Trump’s campaign promises, including the creation of a national Bitcoin reserve, support for crypto miners, and the establishment of a regulatory advisory committee, have increased investor confidence in the market. His victory has sparked optimism about potential changes in SEC leadership and more favorable policies for the crypto industry.

As Trump heads into a second term, many industry figures, like Matt Hougan, Bitwise’s chief investment officer, believe his win could mark the beginning of a “golden age” for crypto. Bitwise was one of the 11 companies that launched spot Bitcoin ETFs in the U.S. earlier this year.