Bitcoin, often called ‘digital gold,’ continues to make significant strides in the Exchange Traded Funds (ETF) market, as highlighted by CryptoSlate analysis. Currently, Bitcoin’s price, pegged against gold, is 25.5 ounces, a decrease from the 2021 high of 37 ounces. Despite this, Bitcoin’s market cap is a significant 7.37% compared to gold’s. At the same time, it marked its ascension as a $1T asset class when it breached $51,020.
BTCUSD/XAUUSD: (Source: Trading View)Bitcoin ETFs have garnered substantial attention, with approximately $41 billion invested across US-based ETFs as of February, as shown on Bloomberg Terminal shared by Bitcoin Munger.
Sum Bitcoin ETFs: (Source: Bitcoin Munger, Bloomberg)Comparatively, gold ETFs command a more significant share with $111 billion invested. However, Bitcoin Munger suggests that at the current growth rate, Bitcoin could soon reach parity with investment in ETFs.
Sum Gold ETFs: (Source: Bitcoin Munger, Bloomberg)Despite outflows in Gold ETFs in 2024, Bitcoin ETFs saw a surge, with net inflows exceeding $5 billion. This data indicates a shifting trend in investor preference and a growing confidence in digital assets.
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