Skip to main content
19 October, 2024

Spot Bitcoin ETFs on Track to Outpace Gold ETFs in Inflows: Analyst

19 October, 2024

Spot Bitcoin ETFs Poised to Surpass Gold ETFs in Inflows

\n

Nate Geraci, President of The ETF Store, predicts US-based spot Bitcoin exchange-traded funds (ETFs) will soon eclipse gold ETFs in terms of cumulative net inflows. This bold statement comes on the heels of an impressive week for Bitcoin ETFs, which saw over $2 billion in net inflows.

\n

These Bitcoin ETFs have been making waves in the financial markets, attracting significant investments as Bitcoin’s price surged by 9.23% this week, approaching the critical resistance zone at $70,000. This strong performance, coupled with the exponential growth of Bitcoin ETFs since their launch in January, has fueled Geraci’s prediction.

\n

A Tale of Two ETFs: Bitcoin vs. Gold

\n

While gold ETFs currently hold a commanding lead in cumulative net inflows with roughly $55 billion, Bitcoin ETFs, despite only trading for a year, have already garnered $20.66 billion in net inflows. Bloomberg analyst Eric Balchunas points out that spot Bitcoin ETFs have reached $65 billion in total net assets, a feat that took gold ETFs five years to achieve. This figure represents over 25% of the total assets under management in the global gold ETF market.

\n

Geraci’s prediction is further supported by the fact that there are currently only 11 spot Bitcoin ETFs compared to nearly 5,000 gold ETFs globally. This suggests that Bitcoin ETFs are gaining momentum quickly and could potentially surpass gold ETFs in the next two years, especially considering the upcoming crypto market bull run and increasing adoption of digital assets.

\n

Bitcoin’s Price: A Potential Dip on the Horizon?

\n

While the Bitcoin market is currently bullish, crypto analyst Ali Martinez cautions that Bitcoin could experience a short-term dip following its recent price rally. The TD sequential indicator on the 4-hour chart is signaling a sell signal, reinforced by a bearish divergence on the Relative Strength Index (RSI). This suggests a potential price correction.

\n

If Bitcoin’s price does decline, investors should look towards the $60,000 price zone for support. However, a strong selling pressure could push Bitcoin down to $55,000. As of this writing, Bitcoin is trading at $68,428, with a 0.98% gain over the past day.

\n

The future of Bitcoin and its associated ETFs remains uncertain, but the current trends suggest a bright future for the cryptocurrency and its investment vehicles. It will be interesting to see if Geraci’s prediction of Bitcoin ETFs outpacing gold ETFs comes true in the next two years.