Bitcoin spot ETFs, on the market for less than a year, are poised to overtake gold exchange-traded funds in terms of assets held, as investors bet billions on the rising price of bitcoin.
The 36 spot bitcoin ETFs tracked by etf.com have about $120.5 billion, while gold ETFs have $125.7 billion, as of market close on December 17.
Investors have poured $60 billion into spot bitcoin ETFs since their debut on Jan. 11, with huge inflows following the Nov. 5 election of cryptocurrency supporter Donald Trump. Bitcoin itself has more than doubled this year, driving up the values of those funds.
At the same time, more than $1 billion has been withdrawn from gold ETFs this year, even as the prices of those funds have risen. For example, the SPDR Gold Trust (GLD) has increased 28% so far this year, while $824 million has been withdrawn from the fund. That fund, which began trading in 2004, is larger than any of the bitcoin ETFs.
Still, the growth rate of the largest spot bitcoin ETF far exceeds that of gold. He iShares Bitcoin Trust (IBIT)With $54.8 billion in assets, it has raised $42.5 billion and more than doubled its price.
Bitcoin and other crypto ETFs are in their infancy and, as currencies, are thousands of years younger than gold. Ethereum ETFs began trading in June after approval by the Securities and Exchange Commission and analysts expect that under a crypto-friendly Trump administration that takes office next month, more coins will be packaged, from Solana to XRP, in ETFs.
According to a Tuesday night tweet from ETF Store President Nate Geraci, who cited Bloomberg analysts Eric Balchunas and James Seyffart, crypto ETF assets may outperform those of precious metals next year. Balchunas predicted earlier this year that bitcoin spot funds will surpass assets under management in gold funds in the next two years.
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