Bitcoin exchange-traded funds (Bitcoin ETFs) in the United States have surpassed gold ETFs in assets under management (AUM) for the first time. According to a report from K33 Research, as of December 16, the total AUM for U.S. Bitcoin ETFs, including spot and leveraged products, reached $130 billion, slightly overtaking U.S. gold ETFs, which held $128 billion.
This is noteworthy because gold ETFs have had a 20-year head start in the market, while Bitcoin ETFs have only been around for less than a year.
Bitcoin ETFs Have Added Approx. 155,000 BTC Since U.S. Election
Bitcoin ETFs, especially spot ETFs, have seen strong inflows since their launch in January. According to K33 Research, they have added over 27,000 BTC in the past week alone, with monthly inflows totaling nearly 59,000 BTC. Since the U.S. elections in November, these funds have added approximately 155,000 BTC.
The increasing interest in Bitcoin ETFs has contributed to the cryptocurrency’s price rally. Investors now see BTC as a valuable asset for the future, especially after the election of a pro-crypto administration.
Bitcoin ETFs have $130 billion compared to $128 billion for gold ETFs
Eric Balchunas, an ETF analyst at Bloomberg, noted that the total AUM figure includes both spot Bitcoin ETFs and those that use derivatives like futures.
If you include all Bitcoin ETFs (spot, futures, levered) they have $130b vs $128b for gold ETFs.
Balchunas said.
Spot Bitcoin ETFs alone have $120 billion in assets. This is just behind gold ETFs, which have $125 billion. However, their rapid growth suggests they could soon surpass gold ETFs in this category as well.
BlackRock’s iShares Bitcoin Trust (IBIT) is the largest Bitcoin ETF. It has nearly $60 billion in assets. In November, this fund overtook BlackRock’s gold ETF, iShares Gold Trust (IAU), in total assets.
Why Investors Are Turning to Bitcoin
Many investors are choosing Bitcoin and gold to protect their wealth. Both of them have become popular choices in what is referred to as the “debasement trade.” This term describes the increased demand for assets like gold and Bitcoin during times of high inflation, government debt, and global uncertainty.
JPMorgan reported earlier this year that these factors have driven more people to buy gold. Now, Bitcoin is benefiting from the same trend. On December 16, Bitcoin reached a new record compared to gold. The Bitcoin-to-gold ratio, which measures how much Bitcoin can buy in gold, hit its highest level ever.
