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Bitcoin ETF Shows Strong Performance, Bloomberg Analysts Optimistic About Surpassing Gold ETF Size Within Two Years

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Bitcoin ETF Shows Strong Performance, Bloomberg Analysts Optimistic About Surpassing Gold ETF Size Within Two Years

With just six weeks since its launch, the net inflow of the Bitcoin spot ETF has exceeded $8 billion more than gold ETFs. Bloomberg ETF analysts predict that the assets under management of Bitcoin ETFs may surpass gold ETFs within two years.

Grayscale sees record low outflows, Bitcoin ETF trading volume hits new highs, Bitcoin surges to $57,000 again.

Bitcoin ETF Assets Surpass Gold in Two Years

Bloomberg ETF analyst Eric Balchunas pointed out in a recent article that despite Bitcoin spot ETFs being listed for less than six weeks, the inflow of funds has exceeded that of gold ETFs by $8 billion. The asset size is already 40% of gold ETFs and may surpass gold within two years.

The relevant data mentioned in the article are as follows:

  • Net inflows into Bitcoin ETFs reached $5 billion.

  • Excluding GBTC, net inflows reached $12 billion.

  • Gold ETFs saw net outflows of $3.6 billion.

  • The size of US gold spot ETFs is approximately $90 billion; Bitcoin spot ETFs are around $36.4 billion.

Gold Investors Turning to Bitcoin?

Previous reports suggested that the outflows from gold ETFs do not necessarily mean gold investors are turning to Bitcoin, as many US ETFs have also seen significant net inflows.

Gold ETF funds flowing to Bitcoin? Is BTC digital gold or a risky asset?

Eric Balchunas acknowledged this but pointed out:

Although the outflows from gold ETFs may not have flowed into Bitcoin ETFs, the existence of Bitcoin ETFs, and the enthusiasm surrounding these new funds—among the most successful launches in history—have brought competition to gold ETFs.

With gold prices down 2% this year, he believes that gold ETFs may face challenges in maintaining their $90 billion in assets.

BlackRock Reaping the Benefits?

Eric Balchunas also mentioned that BlackRock actually has a gold ETF, "iShares Gold Trust IAU," which is one of its significant revenue sources at 0.25%. Similarly, BlackRock has also achieved significant success with Bitcoin ETFs.

He believes that while BlackRock may be affected by the outflows from gold ETFs, over time, BlackRock will ultimately achieve significant success with Bitcoin ETFs.