According to data from K33 Research, the increasing interest of institutional investors in the United States in Bitcoin ETFs caused the total net assets of these funds to surpass those of gold ETFs for the first time as of Dec. 16.
K33 Research research manager Vetle Lund stated in a post on the X platform on December 17 that the assets under management (AUM) of US Bitcoin ETFs exceeded $129 billion, and this amount exceeded the total value of gold ETFs. Bloomberg ETF analyst Eric Balchunas stated that this figure includes not only spot Bitcoin ETFs but also other types of Bitcoin ETFs such as derivatives. Balchunas explained, "The total AUM of Bitcoin ETFs is approximately $130 billion, while gold ETFs are at $128 billion. However, when only spot ETFs are considered, Bitcoin's value is $120 billion and gold's is $125 billion."
Bitcoin ETFs are only 1 year old$BTC
Spot Bitcoin ETFs, which were approved by the U.S. Securities and Exchange Commission (SEC) and launched in January, have gained an important place in the sector since the day they were listed. According to data provided by Bloomberg Intelligence, the total net assets of spot Bitcoin ETFs in the U.S. reached a significant milestone in November, exceeding $100 billion.
Morningstar’s passive strategies research director Bryan Armour described this increase as “a huge surge in demand, accompanied by positive expectations for Bitcoin.” Armour interpreted the rise in November in particular as the effect of a period when political and economic developments made Bitcoin investments more attractive.
BlackRock’s iShares Bitcoin Trust (IBIT) is the top holding among Bitcoin ETFs with nearly $60 billion in assets under management. IBIT solidified its dominance in November by surpassing BlackRock’s iShares Gold Trust (IAU) gold ETF in net assets.
JPMorgan’s report published in October stated that investors are turning to both Bitcoin and gold in order to secure themselves against increasing geopolitical risks and economic uncertainties. The report defined this trend as “depreciation trading” and stated that increasing geopolitical tensions on a global scale, high inflation expectations and increasing budget deficits of major economies support this trend.