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Galaxy Digital Research Shows Bitcoin ETFs Outperforming Gold ETFs
Recent findings from Galaxy Digital’s research indicate a significant trend in the financial markets, as Bitcoin ETFs have surpassed gold ETFs in terms of assets under management. This milestone underscores the growing acceptance and demand for cryptocurrency investments.
According to the data analyzed by Galaxy, the market capitalization of Bitcoin has reached an astonishing 14% of gold’s $17.8 trillion value. This remarkable growth is further emphasized by the cryptocurrency’s price reaching a new all-time high of $108,000 on December 17. In addition, its total market capitalization now stands at a staggering $2.13 trillion.
Furthermore, Bitcoin ETFs have outperformed their gold counterparts in terms of assets under management, with $129.25 billion in assets compared to the $128.88 billion managed by gold ETFs. This unprecedented growth is a testament to the increasing adoption of cryptocurrency investments among institutional investors and retail traders alike.
As the market’s perception of Bitcoin continues to shift, notable figures such as Federal Reserve Chair Jerome Powell have publicly acknowledged its value as a “digital version” of gold. While maintaining that it remains a speculative asset, Powell emphasized the differences between Bitcoin’s use case and that of traditional sovereign currencies like the U.S. dollar.
This newfound recognition by influential financial bodies has contributed to an influx of interest from both institutional and retail investors. In response, traditional financial firms are increasingly offering Bitcoin-related products and services to cater to this growing demand.
The findings suggest a significant shift in market dynamics, as Bitcoin’s value grows steadily alongside its trading volumes. This increased exposure across various investment channels has enabled more stable and liquid markets for the cryptocurrency. The consistent accumulation of both long-term holders and new market participants further underscores this growth trajectory.
Overall, Galaxy Digital’s research provides compelling evidence of Bitcoin’s rising prominence in the financial landscape, as it outperforms gold ETFs in terms of assets under management and surpasses its own market capitalization records.
Source: blockonomi.com
