US Bitcoin ETFs reach a new historic milestone: their capitalization now exceeds that of gold-backed ETFs. This shift highlights the growing interest in BTC, reinforced by a spectacular rise in the price of Bitcoin and accelerated institutional adoption in less than a year.
American finance invests more in Bitcoin than in gold
A new publication of K33 Research reveals that the sum of assets under management of Bitcoin ETFs (spot and futures) now exceeds that of gold-backed ETFs.
According to Vetle Lunde, Director of Research at K33 Research, U.S. gold-based ETFs total $128.88 billion in assets under management (AUM), compared to $129.25 billion for Bitcoin ETFs and 14.92 billion for Ethereum ETFs.
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In reaction to this publication, Eric Balchunas, analyst at Bloomberg, confirmed the accuracy of the figures. He also highlighted that spot Bitcoin ETFs alone total over $120 billion in assets under management, adding that it is “unbelievable that we are even discussing that they are this close” just 11 months after their launch.
People asking me about this. Answer is YES, if you include all bitcoin ETFs (spot, futures, leveraged) they have $130b vs $128b for gold ETFs. That said, if you just look at spot, btc is $120b vs $125b for gold. Either way, unreal we even discuss them being this close at 11mo. https://t.co/hq8QAc14Xa
— Eric Balchunas (@EricBalchunas) December 17, 2024
However, it is important to remember that although the US spot Bitcoin ETFs are only 11 months old, They benefited from around 620,000 BTC under management from the first day, coming from the Grayscale Bitcoin Trust (GBTC)which went from a trust to a spot ETF on the same day of the launch of the 9 other ETFs.
These 620,000 Bitcoins were worth just $28.4 billion when they transitioned on January 11, 2024, when the price of Bitcoin stood at $45,840. 11 months later, with a roughly 130% increase in the price of Bitcoin, these assets are now worth nearly $65 billionrepresenting almost half of current assets under management.
Although in one year GBTC lost a significant portion of its assets under management, the majority of these funds were redirected to competitors offering lower fees. Today, US spot Bitcoin ETFs manage 1.16 million BTC, an increase of just 43% in Bitcoins under management in 11 months.
However, this progression seems much less impressive than the 324% increase in dollar assets under managementlargely supported by the 130% rise in the price of Bitcoin.
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Bitcoin ETFs are gold ETFs, but better
Bitcoin is gold, but betterwith additional advantages such as its transportability, divisibility, auditability and rarity.
Its only weaknesses compared to gold are the stability of its price, which improves over time, but will take several more decades to reach a similar level of volatilityas well as the trust of its users.
Indeed, it will also take time for users to understand that the decentralization of nodes and mining makes the Bitcoin network particularly robust, even in the face of apocalyptic scenarios.
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These arguments are gradually beginning to be heard on a global scalesupported by greater media coverage, growing politicization and sharply increasing capitalization.
The capitalization of Bitcoin ETFs now exceeds that of gold ETFs, the BTC/XAU ratio has reached a historic high, and the overall capitalization of Bitcoin is only 7 times lower than that of gold, little by little Bitcoin is increasing. installed in the landscape.
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Source: K33 research
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
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