Bloomberg ETF analyst Eric Balchunas has compared Bitcoin Spot ETF and gold ETF in his statement.
Bloomberg ETF analyst Eric Balchunas recently compared Bitcoin Spot ETF to gold ETF.
According to the analyst, the initial success of Bitcoin Spot ETFs has been amplified by the decline in price and interest rates of gold ETFs, causing a fierce battle.
Although only operating for six weeks, Bitcoin ETFs have accumulated more than $8 billion in assets, surpassing gold ETFs by more than 40% in terms of assets.
Balchunas predicts that Bitcoin ETFs may surpass gold ETFs in terms of assets under management (AUM) in less than two years.
Bitcoin ETFs have attracted nearly $5 billion in new net assets since their launch in early January, equivalent to $12 billion when excluding outflows from GBTC. This is in stark contrast to gold ETFs, which have seen $3.6 billion in outflows.
According to the analyst, while the majority of funds from gold ETFs are unlikely to flow into Bitcoin ETFs, the existence of new funds and the excitement surrounding them have certainly increased competition for gold.
According to Balchunas, gold ETFs, currently holding $90 billion in assets, may struggle to maintain their position partly due to operational efficiency issues.
