Bitcoin ETFs Surpass Gold ETFs in Assets Under Management for the First Time

This is an extremely strong time for Bitcoin because these ETFs were just launched 11 months ago, whereas gold ETFs have been present in the market for more than 20 years.

For the first time ever, Bitcoin exchange-traded funds (ETFs) have now surpassed gold ETFs in assets under management (AUM).

On Friday, U.S. Bitcoin ETFs hit a combined total of $129 billion, overtaking the $128 billion held by gold ETFs on December 16, 2024, data from K33 Research and Bloomberg analyst Eric Balchunas shows.

This is a stellar achievement for Bitcoin considering these ETFs were only launched 11 months ago, while gold ETFs have been present in the market for more than 20 years.

The boom in the growth of Bitcoin ETFs highlights the increasing demand for cryptocurrencies from institutional investors and optimism toward Bitcoin’s future.

Leading the pack is BlackRock’s iShares Bitcoin Trust (IBIT), which now holds nearly $60 billion in assets, even surpassing BlackRock’s gold ETF, iShares Gold Trust (IAU), earlier this year.

However, when looking at spot ETFs specifically, gold has an edge by a tiny margin. Gold’s spot ETFs are valued at around $125 billion and Bitcoin’s spot ETFs at about $120 billion. That’s a pretty small gap in how far Bitcoin has traveled in such a short space of time.

The bitcoin ETFs are part of the “debasement trade,” an investment trend that is fueled by increasing global economic uncertainty, high inflation, and concern over rising government deficits, leading investors to seek out safe-haven assets like Bitcoin and gold.

In response to this, Bitcoin’s price has increased and pushed the ratio of Bitcoin-to-gold to its all-time highest.

Over 2024 alone, the spot Bitcoin ETFs have already taken in over 500,000 Bitcoin or even 2.5% of all Bitcoin in circulation. In today’s world, it’s the largest Bitcoin holder of all time and already has surpassed the iconic Satoshi Nakamoto wallet. There is no doubt that US-based Bitcoin ETFs hold a monopoly at around 1.1 million BTC.

But another point is that it will not come until the deluge of brand-new cryptocurrency exchange-traded funds pour in in 2025 and potentially may not only come with the blended Bitcoin and Ether ETFs but could go beyond and include an opportunity for Litecoin ETFs and possibly even more digital coins, Bloomberg industry expert James Seyffart adds.