On November 5, iShares Bitcoin Trust (IBIT), the largest Bitcoin spot ETF to date, recorded a record trading volume of $4.100 billion.
This trading volume, which the Bitcoin ETF reached during the market session on Tuesday, far exceeded the volume seen in stocks such as Berkshire, Netflix or Visa that same day, as highlighted by Eric Balchunas, senior ETF analyst at Bloomberg, in his X account.
These comments reflect a broader trend where investors are increasingly willing to diversify their portfolios with cryptocurrencies, especially in times of political volatility.
Balchunas highlighted the unprecedented increase in activity in BlackRock's Bitcoin ETF, which is attributed to several factors, such as the Trump's re-election prospects, with investors anticipating that the president's return to the White House could prompt more favorable policies for the cryptocurrency market, and the growing institutional interest, with more and more institutional investors increasing their exposure to cryptocurrencies through listed vehicles such as IBIT.
Also, a increased retail adoption Bitcoin is encouraging the adoption of exchange-traded funds like BlackRock, favoring a greater number of daily operations.
IBIT hits record volume on day Bitcoin sets new ATH
The record volume reached by IBIT on November 5 also came amidst the exponential growth of the Bitcoin price, which reached a new all-time high (ATH) on November 5, at $75.360. A few hours later, Bitcoin broke its all-time high again, settling at $76.460.
All of this impressive growth in the cryptocurrency price has generated a lot of interest in the crypto market at large. The magnitude of the volume traded by IBIT is not only remarkable for the figure reached, but also because it is a testament to the growing institutional interest in Bitcoin and digital assets.
Source: SoSo Value
BlackRock’s Bitcoin-based spot ETF has managed to capture attention not only because of its size, but also because of the macroeconomic context surrounding it. The US election day has been a key catalyst for the rise in the price of Bitcoin and for this increase in the fund’s trading activity. Political uncertainty and expectations regarding Donald Trump’s re-election have influenced investment decisions, as many see Trump as a favorable ally for the cryptocurrency market.
In conclusion, the all-time high reached by IBIT on November 5 not only reflects the growing acceptance of Bitcoin as a legitimate financial asset, but also how external factors such as politics can significantly influence financial markets.
With trading volume dwarfing many traditional stocks and a potentially favorable political backdrop on the horizon, the future looks bright for ETFs that open the door to Bitcoin investing.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
