What happened?
Bloomberg's senior ETF analyst predicts that the total asset size of the U.S. Bitcoin ETF could surpass that of gold ETFs in the next two months.
Investors are optimistic about the inflow of funds into Bitcoin-related products, mainly due to Trump's (Donald Trump) victory, the Federal Reserve's interest rate cuts, and the next U.S. Congress being seen as more supportive of cryptocurrencies.
Following this wave of optimism and rising prices, more cryptocurrency ETFs may be launched in the coming week, including Ripple (XRP), Solana (SOL), and Cardano (ADA).
The total asset size of U.S. Bitcoin ETFs will surpass that of gold
According to reports from foreign media (CryptoSlate), the asset management size (AUM) of U.S. Bitcoin ETFs has reached $84 billion, about 66% of the asset management size of gold ETFs.
Recently, Bloomberg's senior ETF analyst Eric Balchunas predicted that based on the growth rate, the asset size of Bitcoin ETFs could surpass that of gold ETFs in the next two months, even faster than his previous estimate of 'four to five years'.
In fact, according to a Bloomberg report on November 9, the asset size of BlackRock's iShares Bitcoin ETF (IBIT) has surpassed that of its iShares Gold ETF. Notably, it took the gold ETF 20 years to reach this asset size, while Bitcoin IBIT achieved it in less than 10 months, indicating a rapid growth in demand for Bitcoin ETFs.
(Bloomberg) points out that market participants are optimistic about the inflow of funds into Bitcoin-related products, mainly due to Trump's victory, the Federal Reserve's interest rate cuts, and the next U.S. Congress being seen as more supportive of cryptocurrencies.
Bitcoin prices and related ETF products continue to break records
Over the past week, not only has the price of Bitcoin reached new highs, but the inflow of funds into Bitcoin ETFs has also continued to grow.
According to data from British asset management firm Farside Investors, last week, spot Bitcoin ETFs set multiple records; for example, on November 7, IBIT's trading volume reached $4.1 billion, the highest trading activity since its launch. Overall, the trading volume of Bitcoin ETFs listed in the U.S. on that day was $6 billion.
Balchunas noted that on that day, the trading volume of IBIT exceeded the combined trading volume of large stocks like Netflix and Visa.
Moreover, as Bitcoin continued to soar over the weekend, IBIT attracted $1 billion in trading volume in just 35 minutes on November 11.
Following this wave of optimism and rising prices, Nate Geraci, CEO of investment advisory firm The ETF Store, predicts that more cryptocurrency ETFs may be launched in the coming week, including Ripple (XRP), Solana (SOL), and Cardano (ADA). He stated that many issuers have adequately prepared for the market changes that the election results may bring and are accelerating the launch of new products.
Source: CryptoSlate, Bloomberg
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