Bloomberg analyst: Bitcoin ETFs could overtake Gold ETFs in AUM in 2 years

on Feb 26, 2024
  • Bloomberg ETF analyst Eric Balchunas says Bitcoin ETFs could surpass Gold ETFs in two years.
  • While Bitcoin ETFs have seen huge net asset inflows since January, gold ETFs have recorded rising outflows.
  • Balchunas believes gold ETFs will struggle to hold to the $90 billion in assets.

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Bitcoin price is up and spot Bitcoin ETFs are seeing record net flows. Good for Bitcoin, not so fo Gold.

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According to Eric Balchunas, a senior ETF analyst at Bloomberg, demand across the bitcoin exchange-traded funds (ETFs) could come at a loss for gold ETFs. In a post shared on X today, Balchunas noted that spot Bitcoin ETFs have seen tremendous inflows compared to gold ETFs.

He sees the digital gold’s footprint or gain as the pain that gold has to bear. Within the next two years, the Bitcoin ETFs assets under management (AUM) could have surpassed that of gold.

“Gold’s Pain is Bitcoin ETFs’ Gain in Store of Value Smackdown.. new from me on how gold being in the gutter is like the cherry on top for bitcoin fans who just got to witness the biggest ETF launch ever. Decent chance bitcoin ETFs pass gold ETFs in aum in less than 2yrs,” Balchunas posted on X.

Gold ETFs to struggle

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A report (screenshot) the ETF analyst shared suggested spot Bitcoin ETFs’ success has come as “both the price and interest for gold ETFs” declines.

Since their trading launch on January 11, spot Bitcoin ETFs have seen more than $5 billion in net assets, the report notes. In comparison, the gold ETFs market has witnessed $3.6 billion in outflows. 

One example of the shifting landscape is BlackRock’s iShares Gold Trust, which has recorded massive outflows. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) has seen huge inflows.

As Balchunas and report’s co-author Andre Yapp note, a struggle in the market for gold could see gold ETFs struggle to maintain the $90 billion in assets.


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