In an amazing turn of events, Bitcoin has overtaken gold in the US ETF market. Bitcoin spot ETFs now hold more assets under management (AUM) than gold ETFs, according to Vetle Lunde of K33 Research. Lunde announced the milestone on December 17 via X, showcasing Bitcoin’s growing appeal.
Gold ETFs have offered a trusted investment option since 2003. However, Bitcoin spot ETFs only launched in January 2024 after years of regulatory challenges. Even though they started late, Bitcoin ETFs have surged past gold ETFs in AUM, reflecting a shift in investor demand.
The approval of Bitcoin ETFs opened the doors for broader cryptocurrency adoption. These funds provide an easy way for investors to gain Bitcoin exposure without directly owning it. This accessibility, paired with Bitcoin’s impressive price performance in 2024, has driven strong inflows.
Major players like BlackRock and Fidelity have fueled Bitcoin ETF growth, bringing credibility and institutional interest. Bitcoin’s appeal as “digital gold” has also resonated, especially in inflationary times, due to its capped supply of 21 million coins.
The rise of Bitcoin ETFs signals a changing investment landscape. Younger investors embrace Bitcoin as a modern financial tool, while traditional investors seek higher returns. Analysts believe Bitcoin’s regulatory clarity and institutional backing will support continued growth.
This milestone underscores Bitcoin’s move from a niche asset to a mainstream investment, challenging gold’s decades-long dominance in the ETF space.
