US Bitcoin ETFs Accumulate More Than Half of Gold Reserves in First Year

US-listed Bitcoin exchange-traded funds have quickly amassed tens of billions in assets, reaching half the assets of gold ETFs in record time.

Since launching in January 2024, Bitcoin ETFs have attracted significant inflows totaling $23.89 billion and $70 billion in total net assets per data by SoSoValue.

By comparison, the latest data puts the total net assets of US-listed gold ETFs at $137.3 billion. numbers from the World Gold Council.

This means that in just 10 months, spot Bitcoin ETFs have accumulated more than 50% of the assets held by gold ETFs, which have been around for two decades, says Nate Geraci, president of The ETF Store. tweeted Thursday.

The rapid adoption of Bitcoin ETFs, according to some, reflects the rise of mainstream interest in the digital asset, with recent daily inflows ranging from $192 million to $893 million.

“There is no doubt that the BTC ETFs have been well received, breaking inflow records,” said Ryan McMillin, chief investment officer of crypto fund Merkle Tree Capital. Decipher.

By comparison, gold ETFs, which debuted in 2004, have long provided a stable hedge against market volatility and inflation.

“It’s difficult to compare absolute flows because the 20 years between launches include a lot of inflation,” McMillin added.

The asset is often compared to its role as a “safe haven”, gold is valued for its historical stability, and Bitcoin is increasingly seen as a digital counterpart due to its limited supply and independence from traditional financial systems.

Jurrien Timmer, Global Macro Director at Fidelity Investments, often characterizes Bitcoin as “exponential gold”, highlighting its fast adoption curve and inherent rarity.

His view suggests that Bitcoin’s value proposition goes beyond traditional “digital gold”, instead emphasizing its potential as a store of value driven by network growth and limited supply.

Regardless, Bitcoin was the best-performing asset of 2024, up 65% year-to-date to $69,533. Gold also performed well, with prices up 16% to $2,746.09 an ounce.

Even though the world’s largest asset fell more than 4% on Thursday, McMillin still believes Bitcoin is finishing the year strong.

“We’ve seen a few sell-offs where larger funds have reweighted their portfolios to capture some gains, or more likely there could be a bit of volatility as we get closer to the US election,” he said.

“I wouldn’t expect us to go much lower here without a major catalyst,” McMillin added.