Bitcoin ETFs have overtaken gold ETFs in total assets under management, marking a significant shift in investor preferences.
Record Holdings Due to US Spot Bitcoin ETFs
Bitcoin ETFs now control $129.25 billion, slightly higher than gold ETFs at $128.88 billion. This shift has been driven by the increasing use of Bitcoin as an inflation hedge and a separate investment asset class. Bitcoin ETFs achieved this in one year, a feat that took gold ETFs 30 years to accomplish. The launch of US Spot Bitcoin ETFs has significantly boosted growth, now controlling over 1.1 million BTC, which exceeds the estimated holdings of Satoshi Nakamoto.
Alternative Investment Preferences
The launch of US Spot Bitcoin ETFs fueled this growth, with BlackRock’s iShares Bitcoin Trust (IBIT) leading with $257 million added in one day on December 6th, from a total of $376.59 million inflows. This indicates a significant investor interest.
Shifts in Market Preferences
Since their approval this year, US Spot Bitcoin ETFs have amassed $33.43 billion, with IBIT alone reaching $34.37 billion in net assets. This trend indicates an increasing presence of digital assets, which could redefine institutional investor and regulatory perspectives on cryptocurrency markets.
The growth of Bitcoin ETFs highlights a significant shift in investment preferences, where digital assets are beginning to compete with traditional investments like gold.
