Launching a Bitcoin spot ETF for just six weeks, the net inflow has exceeded $8 billion more than the gold ETF, according to Bloomberg ETF analyst. The analyst predicts that the Bitcoin ETF’s assets may surpass those of the gold ETF within two years.
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Bitcoin ETF’s Assets May Surpass Gold in Two Years
Are Gold Investors Turning to Bitcoin?
BlackRock Profits from the Situation?
Bitcoin ETF’s Assets May Surpass Gold in Two Years
Bloomberg ETF analyst Eric Balchunas pointed out in a recent article that although the Bitcoin spot ETF has been listed for less than six weeks, the fund inflow is $8 billion more than the gold ETF, and its asset size has already reached 40% of the gold ETF, potentially surpassing gold within two years.
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The relevant data mentioned in the article are as follows:
Bitcoin ETF’s net inflow reaches $5 billion.
Excluding GBTC, the net inflow reaches $12 billion.
Gold ETF has a net outflow of $3.6 billion.
The scale of the US gold spot ETF is about $90 billion; the scale of the Bitcoin spot ETF is about $36.4 billion.
Are Gold Investors Turning to Bitcoin?
Previously reported, the outflow of the gold ETF does not actually represent gold investors turning to Bitcoin, as many US ETFs have also experienced significant net inflows.
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Is gold ETF money flowing into Bitcoin? Is BTC digital gold or a risky asset?
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Eric Balchunas acknowledges this, but he points out that:
Although the outflow of the gold ETF may rarely flow into the Bitcoin ETF, the existence of the Bitcoin ETF and the enthusiasm surrounding these new funds (one of the most successful launches in history) have brought competition to the gold ETF.
And with gold prices down 2% so far this year, he believes that the gold ETF may face challenges in maintaining its $90 billion asset size.
BlackRock Profits from the Situation?
Eric Balchunas also mentioned that BlackRock actually has a gold ETF, “iShares Gold Trust (IAU),” which is also a huge source of income (also 0.25%). The good news is that BlackRock has also achieved significant success with the Bitcoin ETF.
He believes that although BlackRock may be affected by the outflow of the gold ETF, over time, BlackRock will ultimately win significant victories in the Bitcoin ETF.
Eric Balchunas
ETF
Bitcoin
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