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Could Bitcoin ETF become a larger investment tool than Gold ETF?
Bloomberg analysts suggest that this could happen as soon as within 24 months.
Will Bitcoin Outpace Gold?
Eric Balchunas, an ETF analyst at Bloomberg, summarized the recent performance of Gold ETFs in an article published on X. Meanwhile, Bitcoin ETFs have absorbed over $5 billion in inflows since their launch last month.
In a joint report with Andre Yapp from Bloomberg Intelligence, the analysts wrote:
“Although Bitcoin ETFs have been in existence for less than six weeks, they have attracted $8 billion more in funds than their Gold counterparts. Their asset size already constitutes 40% of the Gold ETFs, and it’s possible that their scale will surpass them within less than two years.”
According to data from BitMEX Research, Bitcoin ETFs currently hold assets worth over $37.3 billion as of last Friday. In comparison, VettaFi data shows that Gold ETFs hold approximately $88 billion, with a significant portion managed by the SPDR Gold Shares (GLD) fund.
Since January 11, Gold funds have experienced net outflows of $3.6 billion. Balchunas believes that while some of these funds are unlikely to flow directly into new Bitcoin spot ETFs, the existence of these investment products may create competition for the entire precious metals market.
The analyst further stated, “Gold ETFs may struggle to maintain their $90 billion in assets, partly due to performance.” While the price of an ounce of metal has remained around $2,000 for the past month, BTC has surged by 28% during the same period.
Bitcoin’s Upside Potential
On Monday, Bitcoin touched another two-year high above $53,500 per token, triggering liquidations exceeding $200 million.
Despite recent slowing inflows into ETFs, many analysts speculate that new funds could drive BTC to surpass $150,000 within the next 12 to 24 months. This could significantly increase the existing BTC asset under management in ETFs controlled by BlackRock and Fidelity, potentially making Bitcoin the largest ETF commodity.
Regarding Bitcoin’s success relative to gold, Balchunas added:
“BlackRock may not find this amusing like others do, as they hold IAU and earn 25 basis points on the $25 billion AUM. While they [are] still going to win big here, and over time.”
Given the scarcity of supply for both assets, Bitcoin is often compared to gold as a hedge against currency devaluation.
Sentiment: Positive
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