Bitcoin ETFs have experienced explosive growth since they were approved by the SEC seven weeks ago.
The combined assets under management (AUM) of U.S.-listed Bitcoin exchange-traded funds (ETFs) has now surpassed 51.5% of the size of gold ETFs, after the price of Bitcoin exceeded $63,000 today.
There is currently $92.1 billion invested in 19 U.S. gold ETFs, according to data from etfdb.com. By comparison, U.S. Bitcoin ETFs now hold a cumulative 746,600 BTC, according to data from Dune. With Bitcoin rising to $63,636 earlier today, that means these funds have accumulated more than $47.5 billion in assets.
This milestone follows the SEC's approval of Bitcoin ETFs in the U.S. seven weeks ago, which marked an important recognition of Bitcoin as an investable commodity.
This week, Bloomberg ETF analyst Eric Balchunas predicted that Bitcoin funds will overtake gold in less than two years with their current growth rate.
Gold's Pain is Bitcoin ETFs' Gain in Store of Value Smackdown... new from me on how gold being in the gutter is like the cherry on top for bitcoin fans who just got to witness the biggest ETF launch ever. Decent chance bitcoin ETFs pass gold ETFs in aum in less than 2yrs w... pic.twitter.com/rXJra1dyhF
- Eric Balchunas (@EricBalchunas) February 26, 2024
His view is echoed by Larry Fink, CEO of BlackRock, who has stated that Bitcoin is "digital gold" and a hedge against currency devaluation and inflation.
Today, Bitcoin reached $63,636 before plunging 6.4% within an hour to around $59,500 as traders took profits. Since then, however, buyers have returned and, according to CoinGecko, Bitcoin rebounded to above $61,300 during the press conference.
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