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Local bitcoin ETFs, on the market for less than a year, are poised to overtake gold exchange-traded funds in terms of assets held, as investors bet billions on the bitcoin price rise.
The 36 locate bitcoin ETFs traced per etf.com they have about $120.5 billion while Gold ETFs it held $125.7 billion at the close of the market on December 17.
Investors have poured $60 billion into bitcoin cash ETFs since their Jan. 11 debut, with large flows following the Nov. 5 election of cryptocurrency-friendly Donald Trump. Bitcoin itself has more than doubled this year, boosting the values of these funds.
At the same time, more than $1 billion has been pulled from gold ETFs this year, even as the prices of these funds have risen. For example, the SPDR Gold Trust (GLD) is up 28% so far this year, while $824 million has been taken out of the fund. This fund, which began trading in 2004, is larger than any of the bitcoin ETFs.
Still, the growth rate of the largest spot bitcoin ETF far outpaces that of gold. The iShares Bitcoin Trust (IBIT)with $54.8 billion in assets, it has fetched $42.5 billion, while more than doubling in price.
Bitcoin and other crypto ETFs are in their infancy, and as currencies, thousands of years younger than gold. Ethereum ETFs began trading in June following their approval by the Securities and Exchange Commission and analysts expect that under a crypto-friendly Trump administration that takes office next month, more coins, from from Solana to XRP, will be packaged into ETFs.
According to tweet Crypto ETF assets may outperform precious metals next year, ETF Shop President Nate Geraci said Tuesday afternoon, citing Bloomberg analysts Eric Balchunas and James Seyffart. Balchunas earlier this year predicted that spot bitcoin funds will surpass assets under management in gold funds within the next two years.
