US Bitcoin ETFs Will Soon Catch Up to Gold ETFs in Size

US Bitcoin ETFs will soon catch up to gold ETFs in size if they maintain their current accumulation rate. Bloomberg ETF analyst Eric Balchunas suggests these funds could eclipse gold ETFs by Christmas.

US Bitcoin exchange-traded funds (ETFs) are rapidly catching up to gold ETFs in terms of size, and could even surpass them by Christmas if they continue to accumulate at the current rate, according to Bloomberg ETF analyst Eric Balchunas.

As of November 23, Bitcoin ETFs in the US had reached $107 billion in assets, which is about 86% of the total net assets of gold ETFs, according to data Balchunas combined with HODL15Capital.

“They only lag gold ETFs by $23b, good shot to surpass by Xmas,” Balchunas said.

Bitcoin ETFs are also quickly closing in on Satoshi Nakamoto. The funds currently hold an estimated 98% of Satoshi’s stash of Bitcoin, and are likely to become the world’s largest Bitcoin holder next week, surpassing even the mysterious creator of the asset.

US spot Bitcoin ETFs attracted about $3.3 billion in net inflows this week, according to data from Farside Investors, with BlackRock’s iShares Bitcoin Trust (IBIT) capturing about 62% of the total.

IBIT continues to close in on BlackRock’s iShares Gold Trust (IAU) in terms of net assets. As of November 22, IBIT held $48.4 billion worth of Bitcoin, while IAU’s assets were valued at about $34 billion.

Bitcoin’s rally raises concerns about stability compared to gold

The world’s largest cryptocurrency set a new all-time high of $99,500 on Friday, inching closer to the six-figure mark. For Bitcoin proponents, the bull market is still in its early stages.

VanEck is targeting $180,000 for Bitcoin this cycle. The asset manager reiterated the projection in a recent report, citing bullish indicators such as funding rates, Relative Unrealized Profit (RUP) and retail interest.

However, State Street, which manages over $4 trillion in assets, is expressing concern that investors are getting too carried away by Bitcoin’s potential and are ignoring the stability and long-term value offered by gold.

George Milling-Stanley, chief gold strategist at State Street Global Advisors, warns that the current Bitcoin rally may be creating a false sense of security among investors. In the analyst’s view, gold has a long history as a reliable store of value, while Bitcoin’s future is still uncertain.