US Bitcoin ETFs amass more than half of gold holdings in their first year

US-listed Bitcoin exchange-traded funds have quickly amassed tens of billions in assets, reaching half of what gold ETFs held in record time.

Since launching in January 2024, Bitcoin ETFs have attracted significant inflows, totaling $23.89 billion and $70 billion in total net assets, per facts from SoSoValue.

By comparison, the latest figures put the total net assets of US-listed gold ETFs at $137.3 billion. figures of the World Gold Council.

That means that in just 10 months, spot Bitcoin ETFs have amassed more than 50% of the assets of gold ETFs, which have been around for two decades, says Nate Geraci, president of The ETF Store. tweeted Thursday.

The rapid adoption of Bitcoin ETFs, some say, reflects the growing interest in digital assets, with recent daily inflows ranging from $192 million to as much as $893 million.

“There is no doubt that the BTC ETFs have been well received and have broken all-time inflow records,” said Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital. Declutter.

By comparison, gold ETFs, which came to market in 2004, have long provided a stable hedge against market volatility and inflation.

“It’s difficult to compare absolute flows as 20 years between launches means a lot of inflation,” McMillin added.

The assets are often compared for their role as ‘safe havens’, with gold valued for its historical stability and Bitcoin increasingly seen as a digital counterpart due to its limited supply and independence from traditional financial systems.

Jurrien Timmer, director of Global Macro at Fidelity Investments, often features Bitcoin as ‘exponential gold’, highlighting its rapid adoption curve and inherent scarcity.

His perspective suggests that 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.

Be that as it may, Bitcoin has emerged as the best performing asset of 2024, up 65% this year to $69,533. Gold has also shown strong performance, rising 16% to $2,746.09 per ounce.

Despite the world’s largest asset falling more than 4% on Thursday, McMillin still sees Bitcoin finishing the year strong.

“We have seen some sell-offs, which could be larger funds rebalancing their portfolios to try to book some gains, or it could very likely be a bit of volatility as we get closer to the US election,” he said.

“I didn’t expect us to go much lower here, not without a serious catalyst,” McMillin added.