In 2024, digital assets, particularly bitcoin (BTC), experienced significant growth due to increased institutional adoption. This was driven by two key factors: the integration of bitcoin into public balance sheets as a treasury asset and the success of U.S. spot-listed exchange-traded funds (ETFs) that have amassed over 1 million BTC.
A report from K33 Research revealed that U.S.-listed bitcoin ETFs have surpassed U.S.-listed Gold ETFs in terms of assets under management (AUM), including leveraged products such as futures-based ETFs. As of Dec. 17, Bitcoin ETFs reached AUM worth $129.25 billion, surpassing Gold ETF AUM at $128.88 billion, according to Vetle Lunde, analyst at K33 Research.
However, when comparing spot-based products exclusively, Gold remains slightly ahead. According to Senior Bloomberg ETF Analyst Eric Balchunas, U.S. bitcoin spot ETFs hold $120 billion in AUM compared to $125 billion for Gold ETFs. The CME exchange, primarily used by institutions, continues to have strong activity, with futures open interest approaching new highs, at 212,635 BTC in open interest contracts.
The basis trade premium has continued to rise, reaching 16.4% — the highest level since November 2023. This indicates that CME traders anticipate increased momentum as the year comes to a close. The report notes that January contracts are trading at sharp premiums relative to December contracts, with the contango widening to 1.5% on Monday — the highest next-month premium recorded since November 2023.
The December contract on CME remains the most valuable, with open interest equivalent to 113,480 BTC. The upcoming December roll is expected to be significant, as several upcoming banking holidays may contribute to a further widening of the January premium. The momentum has continued for the past month, as the U.S.
spot-listed bitcoin ETFs have seen net inflows every day since Nov. 27, totaling $6.5 billion. It is important to note that as the basis trade premium continues to widen and with a growing amount of open interest contracts on the CME, a large portion of these net inflows are part of the cash and carry trade.
Source
