Within the cryptocurrency world, Bitcoin (BTC) isn’t the only thing gaining attention. This dynamic includes several spot-backed Bitcoin ETFs based on trading volumes. They have achieved an incredible accomplishment in just one day. Spot Bitcoin ETFs had a wonderful day on February 26. They saw an extraordinary rise in trade volume—they hit $2.4 billion in just one day. However, some think that the recent upswing in bitcoin’s value may have contributed to the increase in ETF trading volumes.
They contend that investors may have turned to ETFs as an approachable investment vehicle as a result of the surge in the leading cryptocurrency. Nine out of the eleven Spot Bitcoin ETFs that the SEC approved in January are undoubtedly seeing record trading volumes.
The internet is in disbelief at a recent assessment that well-known Bloomberg analysts Eric Balchunas and Andre Yapp delivered. According to Balchunas and Yapp, in less than two years, managed BTC ETFs will overtake Gold ETFs. Analysts predicted that if Bitcoin exchange-traded funds (ETFs) maintain their current upward trend in price, they will soon overtake gold ETFs in terms of popularity and active investment.
Bitcoin ETF AUM to Surpass Gold ETF
The experts quickly released their latest theory, outlining the reasons why they believe Bitcoin spot ETFs would soon become more popular. BI experts observed that “Bitcoin ETFs gain shortly is gold’s pain,” as stated in a tweet published by Bitcoin magazine. The analysts went on to explain that the ETFs have attracted a lot of attention because of the decrease in the price of gold and the lack of interest in them. The experts went on to say that despite being “barely six weeks old,” Bitcoin ETFs have already received over $8 billion more in investments than their gold counterparts.
Noteworthy is the fact that BlackRock’s iShares Bitcoin ETF is the only spot Bitcoin ETF that has been impacted by the spike in volumes. It accounts for $1.3 billion, or 55% of all trade volumes, on its own.
The eight other Spot Bitcoin ETFs split the remaining 45%. These come from Bitwise, Valkyrie, Franklin Templeton, VanEck, WisdomTree, Hashdex, and Fidelity. They represent a $2.4 billion trade volume collectively. Later, Balchunas and Yapp advanced their investigation by deciphering metrics linked to the ETFs’ enormous success.
“Bitcoin ETFs have taken in about $5 billion in net new assets since launching in early January. And $12 billion, excluding outflows from GBTC. That contrasts with gold ETFs $3.6 billion in outflows.”
Their presence and the excitement surrounding the new funds notwithstanding, not much of that gold money likely got into Bitcoin ETFs. By all accounts, it was the most successful launch ever. The analysts then revealed that this has increased the metal’s competition.