Bitcoin ETFs Set to Surpass Gold ETFs in Size in Just One Month
Bitcoin is on the rise, and it could soon surpass gold in terms of Exchange Traded Funds (ETF) size. As of November 23, US Bitcoin ETFs have reached $107 billion in assets, that’s around 86% of the total net assets of gold ETFs. Analysts predict that Bitcoin ETFs may outpace gold ETFs by Christmas, with a current lag of only $23 billion according to Bloomberg ETF analyst Eric Balchunas.
The popularity of Bitcoin ETFs is skyrocketing, with funds holding about 98% of Satoshi Nakamoto’s estimated Bitcoin stash. This week alone, US spot Bitcoin ETFs brought in around $3.3 billion in net inflows. BlackRock’s iShares Bitcoin Trust (IBIT) is leading the way, comprising about 62% of the total net inflows.
IBIT is making significant gains compared to iShares Gold Trust (IAU). In fact, as of November 22, IBIT held $48.4 billion worth of Bitcoin while IAU’s assets were valued at around $34 billion. The momentum is clear—Bitcoin is on the rise.
Despite Bitcoin’s surge, some experts are cautious. State Street, a fund manager overseeing trillions in assets, points out that Bitcoin’s rally may be creating a false sense of security among investors. While Bitcoin advocates are excited about its potential, State Street Global Advisors’ chief gold strategist, George Milling-Stanley, highlights the stability and long-term value that gold offers. Gold has a long history of being a reliable store of value, unlike Bitcoin, whose future is uncertain.
Milling-Stanley emphasizes that Bitcoin, unlike gold, is a return play, and investors should be mindful of the differences. While both Bitcoin and gold are valuable assets, Bitcoin’s structure is fundamentally different from physical gold. It’s important to consider the risks and rewards of investing in both assets.
As Bitcoin continues to gain momentum and challenge traditional assets like gold, investors should stay informed and make decisions based on their financial goals. The rise of Bitcoin ETFs is a clear indication of the growing interest in digital assets, but it’s essential to consider all aspects of investing before diving in.
