Eric Balchunas, Bloomberg's ETF analyst, provided noteworthy information about IBIT (Blackrock ETF), stating that the trading volume of this fund reached 3.3 billion USD yesterday, the largest figure in the past 6 months. This seems somewhat unusual, especially when the price $BTC recorded a 4% increase (as the volume from ETF funds usually rises during market downturns). However, we cannot rule out the possibility that this trading volume spike is due to a FOMO (fear of missing out) frenzy, similar to what happened with ARKK in 2020. With the upward trend of BTC in the past few days, it is possible that we are witnessing this, which could lead to a significant influx of capital this week.
In addition to IBIT, many other ETF funds have also recorded increased trading volumes in the past two days. If it is indeed FOMO, we will continue to see large capital flows appearing in the coming days. Conversely, if not, this could just be an arbitrage strategy (buying spot from the ETF fund and opening a short position on CME) similar to previous months.
