Bitcoin (BTC), the first digital currency on the market, has managed to overtake gold in one of the largest ETF markets.
The iShares Bitcoin Trust (IBIT) fund, managed by BlackRock, has surpassed the gold ETF of the same firm in assets under managementiShares Gold Trust (IAU).
This milestone marks a significant change in investor perception towards the so-called “digital gold.”
According to mentioned Ki Young Ju, CEO of CryptoQuant, It took 20 years for the IAU gold ETF to reach $33 billion in assets under management. On the contrary, IBIT almost doubled that figure in less than a year, currently accumulating $55 billion, as seen in the following graph.
Assets under management of BlackRock’s bitcoin and gold ETFs. Source: CryptoQuant.
Issued in January of this year, IBIT has become the ETFs based on bitcoin largest in the worldas reported by CriptoNoticias.
In early December, ETFs, led by IBIT, became the major bitcoin holders, even exceeding the sum estimated to be possessed by Satoshi Nakamoto, creator of the digital currency.
These instruments have quickly gained traction, offering investors a regulated way to gain exposure to the cryptoasset market without needing to purchase bitcoin directly.
Bitcoin ETFs will outperform the rest of the gold ETFs
Eric Balchunas, ETF specialist, consider that Cryptocurrency funds in the United States are experiencing a boom.
According to him, these Could Overtake Precious Metals ETFs in Value by 2025. Balchunas adds that funds based on bitcoin “they have the potential to triple the size of gold ETFs in the long term.”
Currently, assets under management of gold ETFs in the United States amount to approximately 138.360 million of dollars. For their part, spot bitcoin ETFs they approach at 120,000 million dollars.
Assets under management (AUM) of bitcoin ETFs. Source: Hodl15Capital.
This rapid growth suggests the market is embracing bitcoin as a viable and competitive alternative to gold.
Additionally, several ETFs based on other cryptocurrencies are expected to hit US exchanges soon. As CriptoNoticias has reported, these funds consist of assets such as: solarium (SUN), XRP from Ripple, Litecoin (LTC) and Hedera (HBAR).
These products could offer more defined investment strategies for those interested in the cryptocurrency sector. Balchunas also highlights that “an active mergers and acquisitions market, together with a growing number of initial public offerings, could further boost thematic ETFs focused on cryptocurrencies,” explains the ETF specialist.
This change in the ETF market underlines the importance of bitcoin as a growing investment option and reinforces its position as a relevant digital asset compared to precious metals.
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