A new metric has shown that Bitcoin exchange-traded funds (ETFs) may potentially supersede Gold ETFs in assets under management (AUM). Here’s how:
Bitcoin ETFs vs. Gold ETFs
A Bitcoin ETF is a financial product that tracks BTC’s price and allows investors to gain exposure to them. On the other hand, the Gold ETF serve as an investment vehicle, enabling users to gain exposure to the physical gold price. Traditional financial companies offer these products to their customers.
The past two months have been a watershed moment for the entire Bitcoin ecosystem. With the approval of the spot Bitcoin ETF in the United States, investment companies have begun offering a Bitcoin-backed ETF product to clients. Since January 10, spot Bitcoin ETFs have seen noteworthy turnups in value. The majority of the companies offering this product are seeing continuous increases weekly.
Gold ETFs were approved in the United States in November 2004. According to ETF.com, there are 35 gold ETFs available in the U.S. markets with a total AUM of more than $108 billion. In comparison, Bitcoin ETFs have a total AUM of over $40.4 billion from 30 ETF products. A large chunk of these Bitcoin-backed ETF products are spot Bitcoin ETFs.
The AUM metric shows that Bitcoin ETF products account for approximately one-third of gold ETFs. With Gold ETFs being in existence for nearly two decades and spot Bitcoin ETFs for two months, the latter has the potential to supersede the initial. Market experts speculate that Bitcoin ETFs may surpass Gold ETFs within six months if there is a continuous inflow of about $2 billion weekly.
BTC Flies To $61k
The Bitcoin ecosystem is on fire as BTC inches closer to its all-time high (ATH) of $69,000. At the time of writing, the leading cryptocurrency traded at $61,000, representing a 7% increase over the past 24 hours. It is also a 20% price change over the past week.
Source: CoinStats
