Bitcoin ETF rises, U.S. market hits another milestone
Big news has come out of the U.S. crypto market recently: the assets under management (AUM) of Bitcoin ETFs in the U.S. officially surpassed gold ETFs on December 16, setting a historic record. According to data released by K33 Research, the total assets of Bitcoin ETFs exceeded 129.3 billion yuan that day, surpassing the gold ETF’s level of approximately 128.9 billion yuan for the first time. This is undoubtedly a sea-shaking change for the global investment market, and it also shows that Bitcoin’s positioning as “digital gold” is increasingly consolidated.
Image source: K33 Reasearch The managed assets of Bitcoin ETFs in the United States officially surpassed gold ETFs on December 16
You know, gold ETFs have a history of more than 20 years and are long-term recognized safe-haven assets for investors. However, the Bitcoin ETF was launched less than a year ago and has already achieved transcendent results. This means that Bitcoin-focused products are no longer the product of niche hype, but are being fully integrated into mainstream investment portfolios. Experts analyze that the reasons behind this include the good trend of the crypto market in 2024, deepening concerns about inflation and government deficits, and the possibility that the new post-election situation in the United States will provide clearer regulatory and policy benefits.
Frontrunner BlackRock Bitcoin Trust beats own gold ETF
At this stage of the development of Bitcoin ETFs, iShares Bitcoin Trust (IBIT), a subsidiary of the global asset management giant BlackRock, is the most eye-catching. Its assets under management have exceeded 60 billion yuan and surpassed it earlier this year. BlackRock’s own iShares Gold Trust (IAU). This move not only demonstrates the rapid growth in the financial attractiveness of Bitcoin ETFs, but also shows that institutional capital is more favoring digital assets, believing that Bitcoin can compete with gold in its hedging function.
In addition, market observation also pointed out that the U.S. Bitcoin ETF has continued to have net inflows of funds this year. Some analysts have even noticed that against the backdrop of rising inflation concerns and geopolitical uncertainty, the “debasement trade” ) is popular in the investment circle - that is, investors are looking for reliable value storage carriers from the continuous expansion of the money supply. Bitcoin and gold naturally become the core targets of this strategy, but now the growth rate of Bitcoin ETFs has eclipsed gold ETFs.
Spot and derivative financial product ETFs compete, small gap reveals potential
Although Bitcoin ETFs have surpassed gold ETFs overall, if we compare spot (Spot) ETFs alone, the market value of gold spot ETFs is approximately 125 billion yuan, which is slightly higher than the approximately 120 billion yuan of Bitcoin spot ETFs. Bloomberg analyst Eric Balchunas pointed out that considering that the Bitcoin spot ETF has only been around for 11 months, it is enough to compete with the gold ETF's 200 billion assets, which is enough to be called "an achievement that cannot be underestimated." As more cryptocurrency ETFs will be launched next year, including dual-track products for Bitcoin and Ethereum, and even possible Litecoin ($LTC) ETFs in the future, the market scope will be wider. It is worth looking forward to whether Bitcoin can further expand its advantages by then.
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Bitcoin gains momentum in battle for safe-haven asset leadership
Gold has long been regarded as the ultimate safe-haven asset, but data has shown that some funds are turning to Bitcoin. In addition to price increases and capital inflows, subtle policies and economic environment are also driving forces. Market analysis points out that the future political and policy environment in the United States may be more conducive to the development of the encryption industry. Clarified supervision and increased regulatory affinity will stimulate more funds to invest in Bitcoin ETFs, thereby driving the industry to fully enter mainstream investment portfolios.
At present, the price of Bitcoin has risen significantly, and it is gradually favored by large-scale institutional investors. If the overall market environment is more inclined to support the development of crypto assets in the future, Bitcoin's role will surely become more stable. As the practice of the concept of "digital gold", the battle for the lead between Bitcoin ETF and gold ETF may be just the beginning of a long-term trend. The industry expects that if regulations and infrastructure become more mature after 2025, Bitcoin will gain more territory in the safe-haven asset industry and rewrite the traditional financial landscape.
All in all, the milestone of Bitcoin ETF surpassing the asset size of gold ETF is not only a reflection of the increasing strength of the crypto industry, but also a symbol of the shift in market preference. In the next year, the showdown between the crypto industry and traditional safe-haven assets will continue to take place, and investors will choose the time carefully and observe the subsequent changes at the cusp of this crisis.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
“It’s only been launched for less than a year! U.S. Bitcoin ETF surpasses gold ETF, is the leader of safe haven replaced? 』This article was first published in "CryptoCity"
