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US Bitcoin ETFs Amass Over Half of Gold’s Holdings in First Year

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U.S.-listed Bitcoin exchange-traded funds have rapidly accumulated tens of billions in assets, reaching half that held by gold ETFs in record time.

Since launching in January 2024, Bitcoin ETFs have attracted substantial inflows, totaling $23.89 billion and $70 billion in total net assets, per data from SoSoValue.

By comparison, total net assets for U.S.-listed gold ETFs stand at $137.3 billion, according to the latest figures from the World Gold Council.

That means that in just 10 months, spot Bitcoin ETFs have amassed over 50% of the assets held by gold ETFs, which have been around for two decades, Nate Geraci, president of The ETF Store, tweeted Thursday.

The rapid adoption of Bitcoin ETFs reflects the quickening of mainstream interest in digital assets, according to some, with recent daily inflows ranging from $192 million to as much as $893 million.

“There is no question that the BTC ETFs have been well received, breaking all inflow records as they go,” Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, told Decrypt

In comparison, gold ETFs, which debuted in 2004, have long represented a stable hedge against market volatility and inflation.

“It is hard to compare absolute flows as 20 years between launches include a lot of inflation,” McMillin added. 

The assets are often compared for their roles as “safe havens,” with gold prized for its historical stability and Bitcoin increasingly seen as a digital counterpart due to its finite supply and independence from traditional financial systems.

Jurrien Timmer, director of Global Macro at Fidelity Investments, often characterizes Bitcoin as “exponential gold,” highlighting its rapid adoption curve and inherent scarcity. 

His perspective suggests Bitcoin’s value proposition extends beyond that of traditional “digital gold,” instead emphasizing its potential as a store of value driven by network growth and limited supply.

Whatever the case, Bitcoin has emerged as the best-performing asset of 2024, climbing 65% year-to-date to $69,533. Gold has also demonstrated strong performance, with prices up 16% to $2,746.09 per ounce.

Despite the world’s largest asset dipping more than 4% on Thursday, McMillin still sees Bitcoin finishing off the year strong.

“We’ve seen a few sell-offs, which could be larger funds reweighing their portfolios to take some gains, or it could very likely be a little volatility as we get closer to the US election,” he said.

“I wouldn’t expect we go much lower here, not without a serious catalyst,” McMillin added.

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Bitcoin Nears $100,000 As Trump Council Expected To Implement BTC Reserve

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Follow Nikolaus On X Here

What an enormous day it has been today.

Gary Gensler officially announced that he is stepping down from his position as Chairman of the Securities and Exchange Commission (SEC), and minutes later, Reuters reported that Donald Trump’s “crypto council” is expected to “establish Trump’s promised bitcoin reserve.” A bitcoin reserve, that would see the United States purchase 200,000 bitcoin per year, for five years until it has bought 1,000,000 bitcoin. 

Image via Julian Fahrer

Right after both of those, Bitcoin continued its upward momentum and broke $99,000, with $100,000 feeling like it can happen at any second now.

It is hard to contain my bullishness thinking about the United States purchasing 200,000 BTC per year. They essentially have to compete with everyone else in the world who is also accumulating bitcoin and attempting to front run them. There are only 21 million bitcoin and that is a LOT of demand.

To put this into context, so far this year the US spot bitcoin ETFs have accumulated a combined total of over 1 million BTC. At the time of launch the price was ~$44,000 and now bitcoin is practically at $100,000. And that’s all ETFs combined. Imagine what will happen when just one entity wants to buy a total of 1 million coins, having to compete with everyone else accumulating large amounts as well?

I mean MicroStrategy literally just completed another $3 BILLION raise to buy more bitcoin, and will continue raising until it purchases $42 billion more in bitcoin. The United States are most likely going to be purchasing their coins (if this legislation is officially signed into law) at very high prices. The demand is insane and only rising in the foreseeable future.

With two months left to go until Trump officially takes office, it remains to be seen if this bill becomes law, but at the moment things are looking really good. As Senator Cynthia Lummis stated, “This is our Louisiana Purchase moment!” and would be an absolutely historic moment for Bitcoin, Bitcoiners, and the future financial dominance of the United States of America.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.





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The Chart That Shows Bitcoin’s Bull Run Won’t Stop at $100,000

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Peak Bitcoin, hardly.

Follow Rizzo on X.

https://x.com/pete_rizzo_/

As I wrote in Forbes in 2021, the world is waking up to a new reality in regards to Bitcoin – the unlikely truth that Bitcoin’s programming has cyclical effects on its economy.

This has led to at least 4 distinct market cycles where Bitcoin has been branded a bubble, skeptics have rung their hands, and each time, Bitcoin recovers more or less 4 years later to set new all-time highs above its previously “sky-high” valuation.

I personally watched Bitcoin go from $50 to $1,300 in 2013. Then, from $1,000 to $20,000 in 2017, and I watched it go from $20,000 to $70,000 in 2021.

So, I’m just here to relate that, from my past experience, this market cycle is just heating up.

For those who have been in Bitcoin, there’s one tried-and-true and that’s Google Search. As long as I’ve been in Bitcoin, this has been the best indicator of the strength of the market.

Search is low, you’re probably in a bear market. Search heading back to all-time highs? This means new entrants are getting engaged, learning about Bitcoin, and becoming active buyers.

Remember, this is a habit change. Bitcoin HODLers are slowing shifting their assets to a wholly new economy. So, Google Trends search then, represents a snapshot of Bitcoin’s immigration. It shows how many new sovereign citizens are moving their money here.

And it’s something that all who are worried about whether bitcoin’s price topping out in 2024 should pay attention to.

Last year was the Bitcoin halving, and historically, the year following previous halvings has led to price appreciation. Maybe you’re tempted to think, “this time is different” – not me. I look at search and I see a chart that continues to accelerate into price discovery. Trust me when I say no one I know is selling bitcoin.

As shown above, buyer interest is accelerating, and these new buyers have to buy that Bitcoin from somewhere. Add nation states, US states, and a coming Trump administration set to ease the burden on the industry?

Well, I think the chart above says it all really. 

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.



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Bitcoin Nears $96K, Continuing Wild ‘Trump Trade’ Rally

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BTC traded above $95,900 in early Asian hours, less than 6% from a landmark $100,000 figure that would push it above a $2 trillion market capitalization.



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