Bitcoin ETFs Are Surging: Gold No Longer the ETF Favorite

• Bitcoin ETFs surpassed gold ETFs with $129.25B in AUM, gold at $128.88B.  
• Bitcoin achieved parity in just 12 months, while gold ETFs took decades.  
• Investors increasingly prioritize BTC as a hedge against inflation. 

Bitcoin ETFs have flipped gold ETFs in total assets under management (AUM), growing 20 times faster in just 12 months. With $129.25 billion in AUM, Bitcoin ETFs have surged ahead of gold ETFs, which hold $128.88 billion.

This rapid adoption of Bitcoin ETFs shows strong interest from investors seeking exposure to cryptocurrency markets. This trend could reshape how markets value traditional and digital assets.

Gold ETFs Lose Top Spot

For decades, gold has been the number one asset in exchange-traded funds (ETFs), symbolizing stability and wealth preservation. But Bitcoin has changed things. Data from K33 Research shows Bitcoin ETFs surpassing gold ETFs in total AUM, with $129.25 billion compared to $128.88 billion.

What’s more intriguing is the speed of this transformation: while gold ETFs required years to accumulate their assets, Bitcoin ETFs achieved parity in just one year. Experts attribute this meteoric rise to Bitcoin’s appeal as a decentralized, limited-supply asset in an era of inflationary concerns and technological adoption. 

Bitcoin’s Record-Breaking Growth  

Things took a new turn when spot Bitcoin ETFs went live in the United States. U.S. spot Bitcoin ETFs have now surpassed the 1.1 million BTC mark, exceeding the holdings of Bitcoin’s pseudonymous creator, Satoshi Nakamoto. 

On December 6th, spot Bitcoin ETFs received $376.59 million, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for $257 million, according to data from SoSoValue. Since their approval in January, total inflows into U.S. spot Bitcoin ETFs reached $33.43 billion, with IBIT leading at $34.37 billion.

Read also : Spot Bitcoin ETFs Reach $112B, Ripple CEO Says ‘Told You So’

At the same time, Grayscale’s GBTC saw $20.82 billion in outflows, reflecting a market shift toward spot ETFs. Currently, the net assets of all U.S. spot Bitcoin ETFs stand at $112.74 billion, representing 5.62% of Bitcoin’s market capitalization.

Overall, these milestones highlight an ongoing shift in investor preferences, with digital assets gaining ground as viable investment vehicles. The implications are far-reaching, potentially influencing institutional strategies and regulatory approaches to cryptocurrencies.