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Bitcoin ETFs Surpass Gold ETFs in AUM
In a significant milestone, Bitcoin ETFs have surpassed gold ETFs in total assets under management (AUM), with Bitcoin funds reaching $129 billion compared to gold ETFs’ $128 billion as of December 16, according to K33 Research.
This development marks a major shift in institutional investor preferences, as Bitcoin ETFs have become the new market leader. BlackRock’s iShares Bitcoin Trust has emerged as the dominant player in the space, managing nearly $60 billion in assets and surpassing its gold counterpart, BlackRock’s iShares Gold Trust, in November.
The surge in Bitcoin ETF inflows, which have exceeded $5 billion since November, is a direct reflection of investors seeking alternative store-of-value assets amid geopolitical and economic uncertainty driven by concerns over inflation, government deficits, and geopolitical instability. The Bitcoin price has also reached a new all-time high of over 108,000, further fueling investor interest.
It’s worth noting that the total AUM figures include not only spot Bitcoin ETFs but also futures and leveraged funds. According to Eric Balchunas, an ETF analyst, the combined value of all Bitcoin ETF types now stands at $130 billion, with spot Bitcoin ETFs accounting for a significant $120 billion compared to $125 billion in spot gold ETFs.
The rapid growth of the Bitcoin ETF market is a testament to the increasing adoption and mainstream recognition of cryptocurrency as a viable alternative investment class. As institutional investors continue to seek stable and diversified portfolios, it’s likely that we will see even more significant inflows into Bitcoin ETFs in the coming months.
It remains to be seen how this shift will impact the overall crypto market and potentially affect the broader financial landscape.
Source: cryptobriefing.com
