Originally published on: December 17, 2024
In a groundbreaking turn of events, United States Bitcoin exchange-traded funds (ETFs) have outpaced their gold counterparts in terms of net assets under management (AUM), according to recent data from K33 Research. Institutional asset managers are flocking to the cryptocurrency, propelling Bitcoin ETFs to new heights.
On December 16th, US BTC ETFs collectively soared past $129 billion in AUM, overshadowing US gold ETFs, which fell just short of this impressive figure, as reported by Vetle Lund, the head of research at K33 Research, in a post on the X platform.
K33 Research, a prominent digital asset researcher based in Norway, highlighted the rapid ascent of Bitcoin in the ETF landscape. Bloomberg ETF analyst Eric Balchunas noted that the AUM figures encompass various types of Bitcoin ETFs, including spot, futures, and leveraged options. The fact that Bitcoin funds are now rivaling gold funds after just 11 months is nothing short of extraordinary, according to Balchunas.
The rise of spot BTC ETFs since their January launch following rigorous SEC approval has been monumental. Bitcoin’s dominance in the ETF arena has been undeniable, with US spot BTC ETFs surpassing $100 billion in net assets for the first time in November.
One standout performer among BTC ETFs is BlackRock’s iShares Bitcoin Trust (IBIT), which boasts nearly $60 billion in AUM. In a significant milestone, IBIT overtook Blackrock’s gold ETF, iShares Gold Trust (IAU), in terms of net assets.
Investors are increasingly turning to gold and BTC in what’s known as the “debasement trade,” anticipating a potential crisis amid escalating geopolitical tensions. JPMorgan’s report in October highlighted this trend, attributing it to rising uncertainty, inflation concerns, and global economic deficits.
As Bitcoin’s purchasing power relative to gold hits record highs, the shifting dynamics between the two assets are becoming increasingly apparent. The rivalry between Bitcoin ETFs and gold funds is a reflection of changing investor sentiments and the evolving cryptocurrency landscape.
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