US Bitcoin Spot ETFs Surpass Gold ETFs in Assets Under Management, Reinforcing ‘Digital Gold’ Reputation
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Bitcoin Spot ETFs in the US surpass Gold ETFs in Assets Under Management, Cementing ‘Digital Gold’ Status
The cryptocurrency market has witnessed a significant shift in sentiment as Bitcoin spot ETFs have surpassed Gold ETFs in assets under management. This milestone marks a turning point in institutional confidence in digital currencies.
As per Bloomberg Intelligence data, U.S. spot Bitcoin ETFs have exceeded the $100 billion mark in net assets for the first time in November. This development signals a major acceptance of Bitcoin as a legitimate asset class by institutions and investors alike.
ETFs (Exchange-Traded Funds) allow investors to gain direct exposure to an underlying asset without the complexities of owning it directly. In the case of Bitcoin, these ETFs provide a straightforward means for investors to tap into the cryptocurrency’s potential.
On the other hand, Gold ETFs have long been recognized as a hedge against economic instability and inflation due to their benefits in offering lower capital commitment and eliminating ownership logistics. However, they come with drawbacks such as potentially lower long-term wealth accumulation compared to physical gold, complexities in fund management, and fees that can erode returns.
Bitcoin is increasingly being touted as “digital gold” due to its decentralized nature, capped supply of 21 million coins, and ability to function independently of governments and central banks. Its performance during inflationary periods has attracted numerous investors seeking alternative assets for their portfolios.
The leading Bitcoin ETF in the US is BlackRock’s iShares Bitcoin Trust (IBIT), boasting an impressive $60 billion in assets under management as reported on the official website of BlackRock.
It’s notable that IBIT exceeded the assets under management of BlackRock’s iShares Gold Trust (IAU) in November, further solidifying Bitcoin’s status as a preferred store of value.
At the time of writing, BTC is trading at $104,567 and continues to struggle with its recent resistance level of $106,533. However, if large holders of Bitcoin increase their accumulation activities, the coin’s price may recover this threshold and surge towards new records.
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Source: www.crypto-news-flash.com
