BTC ETFs Remain Widely Popular, Can Bitcoin Surpass Gold as a Store of Value?

The amount of assets flowing into bitcoin ETFs has surpassed half of those in the gold ETF category as net inflows into these funds continue and the price of BTC continues to grow. 

According to BitMEX Research statistics, the 10 US spot bitcoin ETFs have surpassed the $50 billion assets under management threshold, with a value of roughly $52.5 billion on Monday. 

On January 11, the Grayscale Bitcoin Trust (GBTC) converted to an ETF and transferred over about $28 billion in assets. This indicates that the asset level of the segment has almost quadrupled in just seven weeks as a result of $7.9 billion in net inflows and an increase in the value of the underlying bitcoin funds.

Equities in physically backed gold ETFs are valued at around $91 billion. State Street Global Advisors’ SPDR Gold Shares (GLD), which became the first fund of its sort in 2004, include roughly $54 billion of those assets. 

Crypto executives and industry observers have quickly pointed out that it took GLD almost two years to reach the $10 billion asset level that BlackRock’s IBIT reached in seven weeks.

Within two years, the assets under management of bitcoin ETFs might surpass those of gold ETFs, according to some experts.

Since its inception on January 11, IBIT has received inflows totaling around $8.4 billion. During that time, GLD has experienced withdrawals totaling almost $2.9 billion. 

The BTC ETF industry has also undergone a lot of churning in the recent past. 

On Tuesday, Osprey Bitcoin Trust (OBTC) issued a warning, stating that it must sell the Trust or combine it with an already-existing Bitcoin ETF. To deregister, the Trust will send a Form 15 to the Securities and Exchange Commission. 

Osprey investigated taking over Grayscale’s Bitcoin trust’s management in January of last year. Osprey’s Trust was GBTC’s rival before Grayscale’s fund was converted. 

After stating that it was “aware that the common units of fractional undivided beneficial interest of the Trust are trading at a discount to the value of Bitcoin,” the Trust decided to look for “strategic alternatives.”

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.