U.S.-listed Bitcoin exchange-traded funds have quickly amassed tens of billions of dollars in assets, reaching half the assets held by gold ETFs in record time.
Since its launch in January 2024, Bitcoin ETFs have attracted significant inflows totaling $23.89 billion annually, with total net assets of $70 billion. data From SoSoValue.
By comparison, a recent report puts the total net assets of U.S.-listed gold ETFs at $137.3 billion. figures From the World Gold Council.
This means that in just 10 months, spot Bitcoin ETFs have amassed more than 50% of the assets held by gold ETFs over 20 years, said Nate Geraci, president of The ETF Store. tweeted thursday.
According to some, the rapid adoption of Bitcoin ETFs reflects accelerating mainstream interest in digital assets, with recent daily inflows ranging from $192 million up to $893 million.
“There is no doubt that the BTC ETF has been well-received and has broken all inflow records,” said Ryan McMillin, chief investment officer at cryptocurrency fund manager Merkle Tree Capital. decryption.
By comparison, gold ETFs, launched in 2004, have long provided a reliable hedge against market volatility and inflation.
“It’s difficult to compare absolute flows because the 20 years between releases involve a lot of inflation,” McMillin added.
The asset is often compared to its role as a “safe haven,” with gold prized for its historical stability and Bitcoin increasingly seen as its digital counterpart due to its limited supply and independence from traditional financial systems.
Jurrien Timmer, global macro director at Fidelity Investments, often characteristic Bitcoin is “exponential gold,” with a rapid adoption curve and inherent scarcity.
His view suggests that Bitcoin’s value proposition goes beyond that of traditional “digital gold” and instead emphasizes its potential as a store of value due to network growth and limited supply.
Whatever the case, Bitcoin has emerged as the best-performing asset of 2024, up 65% since the start of the year to $69,533. Gold prices also performed strongly, rising 16% to $2,746.09 per ounce.
Despite the world’s largest asset falling more than 4% on Thursday, McMillin believes Bitcoin will still finish the year strong.
“We have seen a few sell-offs, which could be larger funds rebalancing their portfolios to take some gains, and it is very likely that we will see some volatility as we get closer to the US election,” he said.
“I don’t expect us to get much lower from here without a serious catalyst,” McMillin added.
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