Bitcoin ETFs are experiencing rapid growth and could soon outperform their gold counterparts.
Bitcoin funds in the United States had $107 billion in assets as of November 23, accounting for 86% of total gold fund assets.
The $23 billion gap could close by Christmas if this rate continues, according to an analysis by Bloomberg's Eric Balchunas.
This week alone, Bitcoin funds have attracted net inflows of $3.3 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for 62% of it.
Currently, IBIT has assets worth $48.4 billion, surpassing the iShares Gold Trust (IAU) which holds $34 billion.
Bitcoin funds are also close to surpassing Satoshi Nakamoto's holdings to become the world's largest holders of Bitcoin.
Although Bitcoin hit a high of $99,500 on Friday, boosting optimism about a rise to $180,000 according to VanEck analysts’ expectations.
But analysts like State Street's George Milling Stanley say the rally could create a false sense of security.
He points out that gold, with a long history as a reliable store of value, is more stable than Bitcoin, which remains subject to volatility.
This year, Bitcoin has outperformed with a staggering 160% return compared to 30% for gold, pushing Bitcoin’s market cap past silver and Saudi Aramco, but its future remains a matter of debate among investors.