Bitcoin ETFs Overtake Gold in AUM, Marking Investor Shift

• Bitcoin ETFs have reached $129.25 billion in AUM, surpassing gold ETFs, which hold $128.88 billion.  
• U.S. spot Bitcoin ETFs now hold over 1.1 million BTC, exceeding Satoshi Nakamoto’s estimated holdings.  
• BlackRock’s iShares Bitcoin Trust leads inflows, with $257 million added on December 6th alone.

Bitcoin exchange-traded funds (ETFs) have overtaken gold ETFs in total assets under management, a milestone shift in investor preferences. However, there is a record from K33 Research that shows that Bitcoin ETFs now control $129.25 billion and are marginally higher than that of gold ETFs which stands at $128.88 billion. This change has been due to the increasing use of Bitcoin as an inflation hedge and as another investment asset class.

Significantly, Bitcoin ETFs were able to accomplish this in one year, making their growth 20 times faster than gold ETFs. This means that gold ETFs achieved similar asset levels in 30 years as equities attained in three years. Many parties attribute this kind of fast growth to scarcity, decentralization, and growing demand for a tool that can shield it from inflation. 

Record Holdings due to US Spot Bitcoin ETFs 

This growth has however been boosted by the launching of the U.S. spot Bitcoin ETFs. Together these ETFs have now hovered more than 1.1 million BTC or more than the quantity owned by Satoshi Nakamoto. However, BlackRock’s iShares Bitcoin Trust (IBIT) enjoys superiority, scoring $257 million in a single day on December 6th, of the total of $376.59 million. 

Shifts in Market Preferences 

Since their approval earlier this year, U.S. spot Bitcoin ETFs have amassed $33.43 billion, with IBIT alone reaching $34.37 billion in net assets. At the same time, Grayscale’s GBTC has experienced significant outflows totaling $20.82 billion. Currently, the combined net assets of U.S. spot Bitcoin ETFs stand at $112.74 billion, representing 5.62% of Bitcoin’s total market capitalization. 

Moreover, this shift highlights a broader trend of digital assets challenging traditional investments like gold. The growing adoption of Bitcoin ETFs could redefine how institutional investors and regulatory bodies view cryptocurrency markets. As digital assets gain acceptance, their implications for investment strategies and market dynamics are becoming increasingly apparent.