US-traded spot Bitcoin exchange-traded funds (ETFs) are rapidly gaining ground and are expected to surpass gold ETFs in terms of total assets under management (AUM) within the next two months. As of November 11, Bitcoin ETFs held $84 billion, making up 66% of the total AUM of gold ETFs.
According to senior Bloomberg ETF analyst Eric Balchunas, the current growth trajectory of spot Bitcoin ETFs indicates that they will overtake gold ETFs much sooner than initially anticipated, possibly within two months. This is a significant acceleration from the previous timeline of four to five years.
The ETF Store CEO Nate Geraci pointed out that BlackRock’s iShares Bitcoin ETF (IBIT) has already exceeded the AUM of the firm’s gold ETF in less than 10 months, a milestone that took the gold ETF 20 years to achieve. This rapid growth in Bitcoin ETFs is a testament to the increasing popularity and acceptance of cryptocurrencies in the financial market.
In a record-breaking week for spot Bitcoin ETFs, IBIT saw over $1 billion in inflows in a single day on November 7, pushing total inflows for Bitcoin ETFs to over $1.3 billion, a new record for the group. Additionally, IBIT closed with $4.1 billion in trading volume on the same day, marking the highest trading activity since its launch. Overall, US-traded spot Bitcoin ETFs recorded $6 billion in trading volume, surpassing previous records.
Balchunas noted that IBIT’s trading volume on November 7 exceeded that of consolidated stocks such as Berkshire, Netflix, and Visa, highlighting the growing interest and activity in Bitcoin ETFs. The surge in trading volume was fueled by Bitcoin reaching a new all-time high over the weekend, driving investors towards crypto-related assets.
Bitwise CEO Hunter Horsley mentioned that the company’s products are experiencing significant trading volumes, indicating a strong demand for crypto-related ETFs. Geraci predicted that more crypto-related ETFs, including XRP, Solana (SOL), and Cardano (ADA), may be listed in the coming week as issuers are well-prepared for market developments and see potential opportunities for growth.
Overall, the rapid rise of Bitcoin ETFs and the increasing interest in cryptocurrency-related assets suggest a shifting landscape in the financial market, with digital assets gaining more prominence and acceptance among investors. This trend is expected to continue as more investors look to diversify their portfolios and capitalize on the potential growth opportunities offered by cryptocurrencies.