Bitcoin ETFs Heavier Than Gold Funds For 1st Time
Net assets in US Bitcoin exchange-traded funds (ETFs) overtook those in gold funds for the first time as institutional asset managers demand the cryptocurrency, per K33 Research data.
U.S. BTC ETFs held assets under management (AUM) of $129 billion, just less than the amount held by US gold ETFs on December 16. The head of research at K33 Research, Vetle Lund, posted it on the X platform.
Eric Balchunas, an ETF analyst at Bloomberg, claims that the AUM figure comprises both spot BTC ETFs and ETFs that use financial derivatives, like futures, to track Bitcoin’s performance “If you include all Bitcoin ETFs (spot, futures, and levered), they have $130 billion, while gold ETFs have $128 billion.”.
Spot bitcoin exchange-traded funds (ETFs) were introduced after a protracted review process with the US Securities and Exchange Commission (SEC) in January. Bitcoin has since taken center stage in the ETF market.
US spot Bitcoin ETFs broke $100 billion in net assets for the first time In November as shown on Bloomberg Intelligence data. BlackRock’s iShares Bitcoin Trust (IBIT), with almost $60 billion in AUM, is the top spot BTC ETF. IBIT overtook Blackrock’s gold ETF in terms of net assets (iShares Gold Trust (IAU)) last month.
A JPMorgan report from October claims that investors are reverting to gold and Bitcoin in a so-called “debasement trade” as they prepare for a “catastrophic scenario” due to escalating geopolitical tensions.
The “debasement trade” is a surge in demand for gold brought on by several factors, including “structurally higher geopolitical uncertainty since 2022, persistent high uncertainty about the longer-term inflation backdrop, to concerns about persistently high government deficits across major economies.
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