Bitcoin ETFs Set to Overtake Gold ETFs in Assets by Year-End

Bitcoin ETFs Expected to Overtake Gold ETFs in Assets by Year’s End

Analysts are anticipating a significant shift in the investment landscape, predicting that by Christmas, Bitcoin exchange-traded funds (ETFs) in the U.S. will surpass gold ETFs in total asset size. Currently, gold ETFs hold assets worth around $107 billion, a threshold that Bitcoin ETFs are poised to cross shortly.

Leading Growth in Bitcoin ETFs

Leading this remarkable growth is BlackRock’s iShares Bitcoin Trust, which commands an impressive 73% share of all new capital flowing into Bitcoin ETFs. If the momentum continues, there’s a real chance that Bitcoin ETFs will exceed their gold counterparts by the end of the holiday season. As of November 23, Bitcoin ETFs in the U.S. amassed assets totaling $107 billion, representing roughly 86% of what gold ETFs currently hold. In an intriguing turn of events, Bitcoin ETFs are nearing the status of the largest holders of Bitcoin itself. They reportedly control around 98% of the Bitcoin believed to be associated with its enigmatic creator, Satoshi Nakamoto.

Recent Investment Trends

Just last week, spot Bitcoin ETFs welcomed an influx of approximately $3.3 billion in net investments, with BlackRock’s iShares Bitcoin Trust (IBIT) capturing around 62% of this amount. This surge further enhances IBIT’s dominance over iShares Gold Trust (IAU) in terms of net assets. Bitcoin recently soared to an all-time high of $99,500. Many bullish market participants feel this rally may be just the beginning. Analysts at VanEck project that Bitcoin could escalate to $180,000 in this market cycle, buoyed by various favorable indicators.

Concerns Over Investment Shifts

However, the excitement surrounding Bitcoin doesn’t sit well with everyone. State Street, which oversees over $4 trillion in assets, has voiced concerns that the fervor for Bitcoin might overshadow gold’s long-term reliability and value. The firm’s chief gold strategist cautioned investors against being swept away by the current Bitcoin surge, stressing important differences between the two asset classes. This year has been particularly fruitful for Bitcoin, which has surged by 160%, compared to a more modest 30% gain for gold. This stark disparity highlights Bitcoin’s rapid ascent in market capitalization—offering a striking contrast against traditional financial assets. “`html

Source: Cryptobriefing.com

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