U.S.-listed Bitcoin exchange-traded funds have rapidly accumulated tens of billions in assets, reaching half that held by gold ETFs in record time.
Since launching in January 2024, Bitcoin ETFs have attracted substantial inflows, totaling $23.89 billion and $70 billion in total net assets, per datafrom SoSoValue.
By comparison, total net assets for U.S.-listed gold ETFs stand at $137.3 billion, according to the latest figures from the World Gold Council.
That means that in just 10 months, spot Bitcoin ETFs have amassed over 50% of the assets held by gold ETFs, which have been around for two decades, Nate Geraci, president of The ETF Store, tweeted Thursday.
The rapid adoption of Bitcoin ETFs reflects the quickening of mainstream interest in digital assets, according to some, with recent daily inflows ranging from $192 million to as much as $893 million.
“There is no question that the BTC ETFs have been well received, breaking all inflow records as they go,” Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, told Decrypt.
In comparison, gold ETFs, which debuted in 2004, have long represented a stable hedge against market volatility and inflation.
“It is hard to compare absolute flows as 20 years between launches include a lot of inflation,” McMillin added.
The assets are often compared for their roles as "safe havens," with gold prized for its historical stability and Bitcoin increasingly seen as a digital counterpart due to its finite supply and independence from traditional financial systems.
Jurrien Timmer, director of Global Macro at Fidelity Investments, often characterizes Bitcoin as "exponential gold," highlighting its rapid adoption curve and inherent scarcity.
His perspective suggests Bitcoin's value proposition extends beyond that of traditional "digital gold," instead emphasizing its potential as a store of value driven by network growth and limited supply.
Whatever the case, Bitcoin has emerged as the best-performing asset of 2024, climbing 65% year-to-date to $69,533. Gold has also demonstrated strong performance, with prices up 16% to $2,746.09 per ounce.
Despite the world’s largest asset dipping more than 4% on Thursday, McMillin still sees Bitcoin finishing off the year strong.
Thanks @Chagsy great summary.
2024 has proven to be not only a solid year for BTC in terms of price action as you mentioned, but most importantly spreading the understanding of Bitcoin as a asset class not to dismiss.
ETF's have no doubt driven much of this and Black Rock have been the monster bolstering its belief and support for BTC having accumulated 417,000 BTC since 12th Jan 2024.
It's impressive to consider not only are we seeing ETF's accumulating BTC strongly but we have seen BTC hit the agenda of the US election .
We are still so early in so many ways but one thing is for sure the road and pathway has / is and will be lumpy.
Talking about conviction i dialled into the Microstrategy (MSTR) 3rd Qrt call last week.
Microstrategy (MSTR) reported third Quarter results last week and on there earnings call Micheal Saylor outlined the intention to buy a further 42billion of BTC over the next 3 years (2025-2027 ) via equity and fixed income .
Just to put context MSTR hold 252,200 BTC or 1.2% of supply as of end of September 30th 2024.
The accumulation since 2020 has seen MSTR market cap grow to 46.55bill USD. In 2020 MSTR market cap was 1-1.5billion.
Saylor has identified the opportunity regarding Bitcoin and has pounced knowing the supply limit of 21million coins as well as the adoption process underway.
Some say Micheal Saylor well on the way to the worlds wealthiest person.... Time will tell.
I remain bullish over an extended period for Bitcoin and look forward to the week ahead on what may see its accelerated freedom and adoption globally.
Disc : Held in RL and on SM