Originally published on: December 17, 2024
According to a recent report from K33 Research, United States Bitcoin exchange-traded funds (ETFs) have surpassed gold funds in terms of net assets under management (AUM) for the first time. This milestone was achieved on Dec. 16, with US BTC ETFs collectively reaching over $129 billion in AUM, outpacing gold ETFs by a narrow margin.
The head of research at K33 Research, Vetle Lund, shared this data on Dec. 17 through the X platform, highlighting the growing interest among institutional asset managers in cryptocurrency. The rise in AUM for BTC ETFs includes those tracking Bitcoin’s performance through financial derivatives like futures, as stated by ETF analyst Eric Balchunas.
Balchunas noted that Bitcoin funds, including spot, futures, and leveraged ETFs, now stand at $130 billion, compared to $128 billion for gold ETFs. The rapid growth of Bitcoin ETFs has amazed many, considering they have only been in existence for 11 months.
The launch of spot BTC ETFs in January marked a significant development in the cryptocurrency landscape, following a rigorous review process with the US Securities and Exchange Commission (SEC). Since then, Bitcoin has continued to dominate the ETF market, reaching over $100 billion in net assets in November.
The increasing interest in Bitcoin ETFs reflects a positive outlook for the cryptocurrency’s future, driven by factors like geopolitical tensions and macroeconomic uncertainties. Investors are diversifying their portfolios with both gold and BTC, a trend known as the ‘debasement trade’ to safeguard against potential catastrophic scenarios.
As Bitcoin’s price hits new highs, surpassing gold in terms of purchasing power, the debate over the future dominance of digital assets continues to evolve. Stay informed with critical insights and investment opportunities by subscribing to our Markets Outlook newsletter for relevant updates every Monday. Don’t miss out on key trends shaping the financial landscape.
