BlackRock Bitcoin ETF Hits Record $3.36B as Interest Surges

BlackRock’s iShares Bitcoin Trust (IBIT) reached a six-month trading volume high of $3.36 billion this Tuesday, showcasing increased investor interest in Bitcoin and heightened activity across US spot Bitcoin ETFs. This spike reflects growing enthusiasm for Bitcoin as ETFs near the milestone of holding one million BTC, edging closer to Satoshi Nakamoto’s estimated holdings of around 1.1 million BTC.

On Tuesday, IBIT experienced a notable inflow of $642.9 million—double that of the previous day—highlighting a strong upward trend in ETF trading volumes. ETF analyst Eric Balchunas noted that this substantial increase may signal a wave of FOMO (fear of missing out) among investors eager to capture Bitcoin’s momentum, with expectations for more inflows if this interest continues to rise.

The wider market also shows elevated volumes across US spot Bitcoin ETFs, and reaching the one-million BTC mark may be imminent, potentially as soon as next week. BlackRock has positioned itself as a leader in this space, benefiting from Bitcoin's rising appeal among traditional investors. In nine months, IBIT’s market size hit $23 billion, further underscoring BlackRock's influence in the Bitcoin ecosystem. CEO Larry Fink, once skeptical, now views Bitcoin as an “independent asset,” and the company’s recent $680 million Bitcoin purchase emphasizes its confidence in the asset.

This trend aligns with other major financial institutions, with some analysts attributing the increased ETF interest to political factors rather than monetary policy. CoinShares analysts suggest that current US political dynamics could be encouraging traditional investors to engage with Bitcoin for the first time.

Despite this influx of institutional money, some in the crypto community worry about its impact on Bitcoin’s decentralization ethos. Originally designed to bypass traditional financial systems, Bitcoin’s core mission could be at risk if major players like BlackRock amass substantial holdings. As one user on X (formerly Twitter) observed, this concentration of power might run counter to the idea of a decentralized cryptocurrency.

With support from prominent institutions such as BlackRock and MicroStrategy, Bitcoin’s integration into traditional finance continues to gain momentum. IBIT’s recent volume record reflects Bitcoin's growing mainstream acceptance, with FOMO-driven interest possibly shaping trading patterns in the weeks ahead.