Spot Bitcoin ETFs Draw More Capital, Flip Gold ETFs
The recent launch of spot Bitcoin ETFs (Exchange Traded Funds) has led to a surge in investment, surpassing gold ETFs in terms of capital flows over the past two weeks, according to Bitwise CIO Matt Hougan. In a post on X, Hougan notes that Bitcoin ETFs attracted $1.7 billion in the first 14 trading days, compared to $1.3 billion for gold ETFs. This may indicate a shift in investor preference, with some considering Bitcoin as a digital alternative to traditional safe-haven assets.
However, when adjusted for inflation, gold flows still remain slightly larger. It’s important to acknowledge that Bitcoin ETFs were launched after gold had already established itself as a store of value asset throughout history.
Grayscale Investment Liquidates GBTC Trust
Analysts responding to Hougan’s comparison point out that the figure could have been even higher. Since the launch of spot Bitcoin ETFs, Grayscale Investment has been selling off its Grayscale Bitcoin Trust (GBTC), offloading billions worth of BTC. The company is actively converting GBTC into an ETF. Therefore, excluding GBTC, spot Bitcoin ETFs saw a net inflow of $7.1 billion over the last two periods, significantly surpassing gold.
According to Lookonchain data, GBTC sold 5,086 BTC worth over $218 million as of February 1. Meanwhile, eight spot Bitcoin issuers acquired 8,907 BTC worth over $382 million. Fidelity purchased 5,422 BTC out of this amount and currently holds over 59,000 BTC. BlackRock’s fund has also bought more than 66,200 BTC as of February 1.
Writing On The Wall For Gold?
This rapid shift in investment is significant and highlights Bitcoin’s potential to disrupt the traditional investment landscape. Since its launch, Bitcoin has grown to command a market cap of over $840 billion. Supporters are accumulating Bitcoin due to its deflationary nature and long-term growth potential. Public companies like MicroStrategy, Tesla, and Square hold substantial amounts of the coin in their treasuries.
Hot Take: Bitcoin Price Trends Sideways
Currently, Bitcoin is moving sideways and remains firm but uncertain. The daily chart shows that bulls have struggled to break above $47,000 and $50,000, increasing the likelihood of further losses below $39,500.
By
By
By