U.S.-listed spot Bitcoin exchange-traded funds (ETFs) are on the verge of surpassing their gold counterparts in assets under management (AUM), reflecting a significant shift in investor preference toward digital assets.
As of December 17, spot Bitcoin ETFs in the U.S. hold a combined AUM of $120 billion, compared to gold ETFs’ $125 billion, according to Senior Bloomberg ETF Analyst Eric Balchunas. This development underscores Bitcoin’s growing role as a key investment vehicle, buoyed by institutional adoption and rising interest in digital assets.
Bitcoin ETFs Surpass Gold ETFs Across Broader Metrics
A report from K33 Research reveals that, including leveraged products and futures-based ETFs, Bitcoin ETFs have already surpassed gold ETFs in AUM. As of Sunday, Bitcoin ETFs reached an AUM of $129.25 billion, edging past gold ETFs at $128.88 billion.
Institutional Momentum and CME Activity
Institutional adoption remains a driving force behind Bitcoin’s rise. The Chicago Mercantile Exchange (CME), a key venue for institutional Bitcoin futures trading, reported 212,635 BTC in open interest contracts, nearing record highs.
The basis trade premium — a measure of futures price compared to spot price — has climbed to 16.4%, the highest since November 2023. This indicates strong market momentum, with January contracts trading at sharp premiums over December contracts.
The December contract remains the most active on CME, with open interest equivalent to 113,480 BTC, making the December roll a pivotal event. Analysts expect further price action as several upcoming banking holidays could exacerbate January premiums.
Net Inflows and Institutional Adoption
Bitcoin ETFs have seen consistent net inflows since November 27, totaling $6.5 billion, according to data from Farside. Much of this activity is attributed to cash-and-carry strategies, where investors take advantage of futures premiums to generate returns.
A Milestone Year for Bitcoin
The year 2024 has been transformative for Bitcoin, with ETFs playing a critical role in its institutionalization. Bitcoin’s integration into public balance sheets and its rapid adoption by financial markets signal a broader acceptance of cryptocurrency as an asset class.
As spot Bitcoin ETFs continue to draw investor interest, their ascent may soon crown them as the leading ETF product in the U.S. market, potentially overtaking gold — a historic milestone for digital assets.
