$BTC spot ETF vs Gold spot ETF

Many people like to compare gold spot ETFs and Bitcoin spot ETFs in order to find similar price patterns.

The gold ETF was listed on the New York Stock Exchange on November 18, 2004, 20 years earlier than the $BTC spot ETF.

The price of gold ETFs has only increased fourfold in 20 years. In terms of purchasing power, it even underperforms inflation.

But there are fundamental differences between gold and Bitcoin -

(1) The listing of gold ETFs stimulated gold mine owners. World gold production in 2005 was almost twice that of 2004. Bitcoin production will be halved in approximately 90 days. Bitcoin has a limited supply, but gold still has a continuous incremental supply of 3,000-4,000 tons of production every year.

(2) Gold ETFs do not have any legal advantages over direct buying and selling of precious metals at banks’ counters. The Bitcoin Spot ETF has passed the legality for ordinary investors to invest in cryptocurrencies.

Therefore, the price trend of Bitcoin and the price trend of gold are not comparable.

In the coming week, Bitcoin price will confirm the above two points.