Bitcoin Overtakes Gold as the Leading Financial Asset in the ETF Market

Bitcoin has overtaken gold as the leading financial asset in the ETF market, marking a historic shift in investor demand.

Bitcoin has overtaken gold as the leading financial asset in the ETF market, marking a historic shift in investor demand.

On December 17, Vetle Lunde, an analyst at crypto market research firm K33 Research, shared the milestone via X, highlighting the moment.

“In the United States, Bitcoin ETF AUM has surpassed gold ETF AUM. Gold, with a 20-year head start, has been flipped,” wrote Lunde.

The development comes as gold ETFs were first introduced in 2003, giving the precious metal a significant head start. In comparison, Bitcoin spot ETFs in the United States were only launched in January 2024 after years of regulatory delays. Despite this gap, Bitcoin ETFs have managed to outpace gold ETFs in AUM, signaling growing institutional and retail confidence in the digital asset.

Bitcoin Surges Past Gold in ETF Assets Under Management (AUM)

The approval of Bitcoin spot ETFs marked a turning point for cryptocurrency adoption within traditional financial markets. These products allow investors to gain direct exposure to Bitcoin without holding the asset itself, bridging the gap between digital assets and traditional finance.

The milestone reflects surging investor demand for regulated and accessible Bitcoin investment vehicles, particularly given Bitcoin’s strong price performance throughout 2024.

The rapid growth of Bitcoin ETFs also mirrors increasing institutional interest. Financial giants like BlackRock, Fidelity, and Ark Invest have launched Bitcoin ETFs, providing credibility and exposure to a wider investor base. Their involvement has fueled competition, driving significant inflows into these products.

Gold has long been regarded as a hedge against economic instability and inflation. For decades, investors opted for gold ETFs as a safe store of value. However, Bitcoin is increasingly seen as “digital gold,” offering a more modern, decentralized alternative with similar store-of-value properties. Bitcoin’s limited supply — capped at 21 million coins — has made it particularly attractive in inflationary environments.

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