Key Takeaways:
- BlackRock’s iShares Bitcoin Trust (IBIT) reached $10 billion in assets under management (AUM) in just seven weeks, a milestone that took the first U.S. gold-backed ETF over two years to achieve.
- The rapid accumulation of AUM in the Bitcoin ETF reflects a growing investor preference for Bitcoin over traditional investment vehicles like gold ETFs.
- Investment inflows into Bitcoin ETFs have significantly outpaced those into gold ETFs, with record inflows into Bitcoin ETFs observed at the end of February.
- Despite a recent rise in gold prices, the surge in Bitcoin’s price, with a 50% increase since the beginning of the year, highlights the shifting landscape in investor sentiment towards Bitcoin as a preferred store of value.
- Analysts predict that Bitcoin ETFs could surpass gold ETFs in AUM within the next two years, indicating a potential long-term shift in the store of value and investment preference among investors.
BlackRock’s iShares Bitcoin Trust (IBIT) has achieved a remarkable milestone by accumulating $10 billion in assets under management (AUM) within just seven weeks of its launch. This rapid accumulation of assets starkly contrasts with the first U.S. gold-backed ETF, SPDR Gold Shares (GLD), which took over two years to reach the same level of assets following its debut in 2004.
As reported by Zero Hedge, the Bitcoin ETF’s success highlights the significant interest and investment inflows into Bitcoin compared to traditional gold investments.
BlackRock’s iShares Bitcoin Trust has accumulated $10 BN in just seven weeks — the fastest an ETF has ever hit that milestone and a feat which the first gold ETF took more than two years to accomplish: BBG
— zerohedge (@zerohedge) March 3, 2024
By March 1, BlackRock’s Bitcoin ETF had reached this significant figure of $10 billion in AUM, achieving this in approximately 39 trading days since its inception. This performance has been significantly faster than the trajectory of gold ETFs, illustrating the growing investor appetite for Bitcoin as an investment vehicle.
Will Clemente, co-founder of Reflexivity Research, emphasized the dramatic difference in inflows between Bitcoin ETFs and gold ETFs, noting that Bitcoin inflows have far surpassed those of gold, indicating a strong investor preference for Bitcoin over gold in recent times.
There were several days of record inflows into spot Bitcoin ETFs with notable spikes in investment. This surge in Bitcoin ETF investments contrasts with the outflows seen in gold funds, as highlighted by retired venture capitalist Jeff Kirdeikis.
Bitcoin is eating Gold.
— Jeff Kirdeikis (@JeffKirdeikis) March 4, 2024
Bitcoin ETF's are inflowing in record amounts, while Gold ETF's are outflowing Billions.
Bitcoin ETF's have already gathered ~50% of the value of Gold ETF's in a single month.
Gold has been the leader for thousands of years.
We're witnessing history. pic.twitter.com/XNQLLEk122
Despite a significant rise in gold prices, the attention and capital seem to be shifting towards Bitcoin ETFs, suggesting a changing landscape in investor preferences between gold and Bitcoin.
Gold enthusiast Peter Schiff, however, remained unimpressed by the Bitcoin ETF’s success, pointing out the lack of media coverage on recent gains in gold prices and its market performance.
#CNBC is so fixated on the sideshow going on with #Bitcoin and the new #BitcoinETFs, that they haven't even reported on today's $43 rise in the price of #gold, or the new record-high price in the gold ETF $GLD. This lack of mainstream coverage is just one of many bullish signs.
— Peter Schiff (@PeterSchiff) March 1, 2024
Despite the excitement surrounding Bitcoin ETFs, gold prices have seen a return to near-peak levels, although the precious metal has only seen a modest increase since the start of the year compared to Bitcoin’s 50% price surge over the same period.
Analysts, including Bloomberg’s ETF expert Eric Balchunas, speculate on the potential for Bitcoin ETFs to surpass gold ETFs in AUM within the next two years, highlighting a significant shift in investor sentiment towards viewing Bitcoin as a viable store of value alongside traditional assets like gold.
Gold's Pain is Bitcoin ETFs' Gain in Store of Value Smackdown.. new from me on how gold being in the gutter is like the cherry on top for bitcoin fans who just got to witness the biggest ETF launch ever. Decent chance bitcoin ETFs pass gold ETFs in aum in less than 2yrs w… pic.twitter.com/rXJra1dyhF
— Eric Balchunas (@EricBalchunas) February 26, 2024
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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