In a rapid shift within the investment landscape, U.S.-traded spot Bitcoin ETFs are on the verge of eclipsing their gold counterparts. As of November 11, spot Bitcoin ETFs in the United States hold approximately $84 billion, nearing 66% of the assets under management (AUM) of gold ETFs. The accelerated growth in Bitcoin ETFs may outpace traditional gold assets in just two months, a trajectory initially expected to take several years.
Eric Balchunas, a senior ETF analyst, expressed surprise at the speed of growth: “The progress we’re seeing is remarkable and far faster than my original estimate of four to five years.” His outlook reflects the broader enthusiasm among investors as cryptocurrency ETFs gain mainstream traction.
Echoing Balchunas, Nate Geraci, CEO of The ETF Store, noted the impressive performance of BlackRock’s iShares BTC ETF (IBIT). He emphasized that the AUM of IBIT has already surpassed BlackRock’s gold-focused ETF, the iShares Gold ETF (IAU)—an achievement that took IAU nearly 20 years, while IBIT accomplished it in under 10 months.
Recent figures underscore this trend. On November 7, Farside Investors reported that IBIT experienced a record-breaking $1 billion in single-day inflows, driving the collective inflows for spot Bitcoin ETFs above $1.3 billion, setting new benchmarks for crypto ETFs.
Further solidifying its market influence, IBIT closed on November 7 with $4.1 billion in trading volume, marking one of its most significant trading days since its launch. Across U.S.-traded Bitcoin ETFs, total trading volume hit an impressive $6 billion that day, surpassing records for recently launched ETFs. Balchunas noted that this trading volume exceeded those of blue-chip stocks like Berkshire Hathaway, Netflix, and Visa, signaling the growing mainstream acceptance and demand for Bitcoin ETFs.
As Bitcoin continued its weekend rally to new all-time highs, IBIT registered $1 billion in trading volume within the first 35 minutes on November 11. Other ETFs in the sector are experiencing similar surges. Bitwise CEO Hunter Horsley described this momentum as a “wave of substantial trading activity” that signals strong investor confidence.
Looking ahead, Geraci anticipates the introduction of additional crypto asset ETFs soon, potentially including assets like XRP, Solana (SOL), and Cardano (ADA). He remarked that several fund issuers are “positioned for rapid action,” prepared to leverage opportunities in the current market landscape.
The rapid ascent of Bitcoin ETFs over traditional assets like gold speaks to a broader shift in investment sentiment. Investors are increasingly favoring digital assets as potential stores of value, signaling a reevaluation of traditional commodities in the face of digital currency’s growing appeal.
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