The breakneck pace of spot-bitcoin exchange-traded fund inflows could soon see the world’s largest cryptocurrency surpass gold in terms of total assets under management (AUM).
Since being approved by the US Securities and Exchange Commission (SEC) this January, the spot-bitcoin ETF market has seen an absolute groundswell in demand.
As it stands, the bitcoin ETF market now has more than $119 billion in assets under management (AUM), according to data supplied by Coinglass.
Blackrock’s IBIT ETF is the largest of the 20-plus ETFs available with around $56 billion in AUM.
The gold ETF market, in comparison, currently has close to $126 billion in AUM (with a 21-year headstart, no less).
Net cash inflows into the bitcoin ETF market since their 11 January approval currently stand at approximately $37 billion, per Farside data.
That represents a substantial year-to-date return for bitcoin ETF investors, thanks to bitcoin’s 135% year-to-date rally.
Bitcoin smashed an all-time high of $108,350 this Tuesday. Although it has since come back a bit, the BTC/USD pair remains in a healthy position at $102,400.
Bloomberg’s ETF expert Eric Balchunas has an even more bullish outlook on bitcoin ETFs going forward.
He stated: “Crypto ETF assets in the US are ballooning and may surpass precious metal peers in 2025, bitcoin ETFs can triple the size ETFs long term, and several new ETFs using crypto derivatives should arrive on the US exchange, offering defined outcomes and covered calls.”
Bitcoin’s year-to-date performance – Source: tradingview.com