Everyone wants to see good and positive market activity, and why not? It’s usually a sign that things are going well and the money is coming in. But as accurate as that may be, all that glitters is also not gold. One analyst, in particular, has pointed out that this may be the situation with the new success the BlackRock Bitcoin ETF is seeing.

October 29 was a great trading day for BlackRock’s Bitcoin popular ETF (IBIT). On that day, the exchange-traded fund saw a surge of $3.35 billion, making it the highest level the ETF has reached in more than six months. 

The sudden and dramatic surge is good news for the issuers of the ETF and many investors, who would be pleased to see the impressive market inflows. However, one man doesn’t seem to think everything is right. 

Bloomberg ETF analyst Eric Balchunas came out on X that same day to state that the trading frenzy was “FOMO confirmed." He then cited data showing that BlackRock's daily inflows reached $599.8 million.

It is even more impressive when you see that CoinGlass data showed that across all 11 Bitcoin ETFs trading in the United States, only $827 million was recorded for all of them, and IBIT got a whopping $599.8 million of the total.

Balchunas also wondered whether the massive trading volume the Bitcoin ETF market recorded was due to a surge in speculative buyers or just heightened activity from arbitrage traders. 

He further stated that the truth of the matter would be revealed over the “next few nights." He believes that it was just a FOMO reaction; the market will know very soon through the flows, and if nothing is detected, it will mean that the surge was due to pure, high-frequency trading or something related.

Alex Thorn, Galaxy Digital’s head of research, also seems to share Balchunas’ sentiment. In an X post, he also pointed out that October was only the third-best day for Bitcoin ETF trade volume ever since April 1, 2024.

Reports show that spot Bitcoin ETFs in the US recorded a $4.64 billion combined trading volume on October 29. Of all the spot Bitcoin ETFs in the mix, IBIT took the largest share with a total trading volume of $3.35 billion.

Grayscale Bitcoin Trust (GBTC) took the second-highest place with a total inflow of $390.3 million on the same day. However, the October 29 results are not the only good news in the IBIT ETF market. 

As it stands, the ETF is on an unbroken inflow streak of 12 days. According to data from Farside, ever since it reached a net flow day on October 10, the ETF has enjoyed a total inflow reaching up to $3.30 billion.

Apart from the success its ETF is seeing, BlackRock is also in the news for reportedly buying $642.87 MILLION worth of Bitcoin on the same October 29. The large purchase has made analysts wonder if it is somehow connected to the sudden ETF inflow surge. It is not yet confirmed whether there is a connection, but whatever BlackRock is doing, it is working.

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