Hot on the heels of gold funds

Spot bitcoin ETFs, which have been on the market for less than a year, are on the verge of overtaking gold ETFs in terms of assets held as investors bet billions on the price of bitcoin rising.

36 Bitcoin spot ETFs tracking By etf.com it has about 120.5 billion US dollars Gold ETFs It holds $125.7 billion, as of market close on December 17.

Investors have poured $60 billion into spot bitcoin ETFs since their debut on January 11, with huge inflows following the election of cryptocurrency-friendly Donald Trump on November 5. Bitcoin itself has doubled in value this year, pushing the values ​​of those funds higher.

Meanwhile, more than $1 billion has been withdrawn from gold ETFs this year, even as the prices of those funds have risen. For example, SPDR Gold Trust (GLD) It has risen by 28% so far this year, while $824 million has been withdrawn from the fund. This fund, which began trading in 2004, is larger than any of the Bitcoin ETFs.

However, the growth rate of the largest spot Bitcoin ETF far exceeds that of gold. the iShares Bitcoin Trust (IBIT)with assets of $54.8 billion, received $42.5 billion while its price doubled.

Bitcoin and other crypto ETFs are still in their infancy, and as currencies are thousands of years younger than gold. Ethereum ETFs began trading in June after being approved by the Securities and Exchange Commission, and analysts predict that under the crypto-friendly Trump administration that takes office next month, more coins, from Solana to XRP, will be pooled into ETFs. .

According to A tweet Late Tuesday, ETF Shop President Nate Geraci, who cited Bloomberg analysts Eric Balchunas and James Seyphart, said crypto ETF assets could outperform precious metal assets next year. Balchunas predicted earlier this year that spot bitcoin funds would surpass the assets under management of gold funds in the next two years.

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