Bitcoin ETF Surpasses Gold ETF in AUM: K33 Research

This milestone for the Bitcoin ETF marks an important step, indicating remarkable growth as it is increasingly embraced by both institutional and individual investors. The net assets of Bitcoin ETFs in the US have for the first time surpassed gold ETFs on December 16, as asset managers rushed to invest in cryptocurrencies, according to data from K33 Research. On December 16, the total net assets under management (AUM) of US Bitcoin ETFs reached $129 billion, surpassing US gold ETFs, which were just slightly behind this figure, according to a post on Vetle Lund's X platform on December 17, Lund being the head of research at K33 Research. K33 Research is a digital asset research firm based in Norway. According to Bloomberg ETF analyst Eric Balchunas, this AUM figure includes both Spot Bitcoin ETFs as well as ETFs tracking Bitcoin's performance using financial derivatives like futures contracts. "If you count all the Bitcoin ETFs (spot, futures, and leveraged), the total AUM is $130 billion versus $128 billion for gold ETFs. However, if you just look at the spot ETFs, Bitcoin is at $120 billion versus $125 billion for gold," Balchunas said. Nevertheless, he commented: "It's pretty remarkable that the Bitcoin funds could compete with gold this way in just 11 months." Spot Bitcoin ETFs were launched in January after a lengthy review process by the US Securities and Exchange Commission (SEC). Since then, Bitcoin has dominated the ETF market. According to data from Bloomberg Intelligence, US spot Bitcoin ETFs first crossed the $100 billion net asset mark in November. The growth in Bitcoin ETF assets reflects "a more positive outlook on Bitcoin's future after Trump's election win, which boosted performance and brought in over $5 billion in new capital," Morningstar's passive research director Bryan Armour told Cointelegraph in November. BlackRock's iShares Bitcoin Trust (IBIT) leads the pack of Bitcoin ETFs, with nearly $60 billion in net assets, according to BlackRock's website. In November, IBIT surpassed BlackRock's gold ETF, the iShares Gold Trust (IAU), in net assets. Investors are shifting towards gold and Bitcoin in a trend called the "debasement trade" as they brace for a "doomsday scenario" amid rising geopolitical tensions, according to an October report by JPMorgan. The "debasement trade" refers to a surge in demand for gold due to factors such as: - Significantly increased geopolitical instability since 2022. - High uncertainty about long-term inflation prospects. - Persistently high government budget deficits in major economies, among other factors, JPMorgan said. On December 16, the Bitcoin/gold ratio - a measure of Bitcoin's purchasing power relative to gold - reached an all-time high as Bitcoin prices broke new records. Keep following Coin Moi for the latest updates in the market!