US-listed Bitcoin exchange-traded funds quickly amassed tens of billions in assets, half of what was held by gold ETFs on record.
Since its launch in January 2024, Bitcoin ETFs have attracted huge inflows, totaling $23.89 billion and $70 billion in total net assets; Data From SoSoValue.
By comparison, total net assets for U.S.-listed gold ETFs totaled $137.3 billion, according to the most recent data. Figures From the World Gold Council.
That means that in just 10 months, spot bitcoin ETFs have accumulated more than 50% of the assets held by gold ETFs over two decades, said Nate Geraci, president of ETF Store. He tweeted. Thursday.
The rapid adoption of the Bitcoin ETF reflects the rapid interest in the digital asset, with some saying that daily revenues have recently ranged from $192 million to $893 million.
“There's no question that BTC ETFs are well received,” said Ryan McMillin, chief investment officer of crypto fund manager Merkel Tree Capital. Decrypt.
In comparison, the Launched in 2004, gold ETFs have long represented a stable hedge against market volatility and inflation.
McMillin added: “Comparing absolute flows is difficult because of the high rate of inflation between the first 20 years.”
The asset is often compared to its role as a “safe haven” due to gold's historical stability and bitcoin's rise as its digital counterpart due to its ultimate supply and independence from traditional financial systems.
Jurien Timmer, Director of Global Macro at Fidelity Investments, often He explains Bitcoin as “exploratory gold” highlights its rapid adoption curve and inherent scarcity.
His perspective suggests that Bitcoin's value proposition extends beyond traditional “digital gold,” instead highlighting its potential as a store of value driven by network growth and limited supply.
Whatever the case, Bitcoin turned out to be the best-performing asset of 2024, rising 65% year-to-date to $69,533. Gold also performed strongly, up 16% to $2,746.09 an ounce.
Although the world's biggest asset plunged more than 4% on Thursday, McMillin still sees bitcoin finishing the year strong.
“We've seen some sell-offs, which could be a little volatile as big funds rebalance their portfolios to take some of the gains or as we get closer to the U.S. election,” he said.
“I don't expect us to go too low here, not without some serious encouragement,” McMillin added.
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