Bitcoin ETFs Surpass $100 Billion, Threaten Gold ETFs’ Leadership

• Bitcoin ETFs surpass $100 billion in assets under management.
• Decline in gold ETFs reflects shift in market preference.
• BlackRock leads growth, cementing the legitimacy of Bitcoin ETFs.

Bitcoin ETFs (Spot Bitcoin ETFs) have experienced remarkable growth in the financial market, consolidating themselves as a viable alternative to traditional gold ETFs. Led by BlackRock's iShares Bitcoin Trust (IBIT), the assets under management of these ETFs have already surpassed the US$ 100 billion mark, an impressive milestone considering that this class of products is less than a year old.

Not ready to call it, but I'm just telling you all…

It's *possible* that spot btc ETF assets surpass physical gold ETF assets before year-end.

Think will depend on price of btc vs gold over next 2+ weeks.

Physical gold ETFs launched *20yrs* ago.

It would be astounding.

— Nate Geraci (@NateGeraci) December 14, 2024

Meanwhile, gold ETFs, which have dominated the market for decades, had accumulated $271 billion in the third quarter of 2024, according to the World Gold Council. although Furthermore, signs of change are evident: gold ETFs have seen significant outflows in recent months, while Bitcoin ETFs have seen substantial inflows, narrowing the gap between the two.

ETF market expert Nate Geraci noted that the pace of growth of Bitcoin ETFs is extraordinary, stating that “in one year, Bitcoin ETFs have achieved results that took gold ETFs two decades to achieve.” Whether this trajectory continues, according to Geraci, will depend on the continued performance of Bitcoin and gold in the coming weeks.

BlackRock IBIT is leading the charge, with inflows surpassing $4 billion in the period since Thanksgiving alone. In a single day last week, the fund recorded another $393 million in flows, cementing its position as the second-best ETF launch of 2024.

The growing demand for Bitcoin, driven by ETFs and institutions, has contributed to upward pressure on prices. Recent data shows that more than 124.000 Bitcoins were withdrawn from major exchanges such as Coinbase, Binance and OKEx in the last month, reducing the available liquidity in the market. This trend, coupled with increased activity in options contracts, has the potential to generate a “gamma squeeze”, further increasing the price of the asset.

At the time of publication, the price of Bitcoin was quoted at US$101.595, up 0.4% in the last 24 hours.

The success of Bitcoin ETFs reflects increased institutional confidence, thanks in part to the entry of traditional players such as BlackRock. The decline in interest in gold and the rise in the value of Bitcoin, which recently surpassed $100 with a market cap of over $2 trillion, are also key factors in this shift.