- Bitcoin exchange-traded funds (ETFs) have seen significant inflows since launching in January 2023, while gold ETFs have experienced outflows during the same period.
- Analysts predict bitcoin’s market cap could eventually surpass gold’s current market cap of over $13 trillion, if bitcoin reaches predicted prices of $200,000-$600,000 per coin in the coming years.
- Bitcoin ETF inflows versus gold ETF outflows demonstrates a shift in investor preferences towards bitcoin over gold.
Bitcoin exchange-traded funds (ETFs) have been attracting significant inflows since their introduction in January 2024, while gold ETFs have seen outflows. This shift in investor behavior has led some analysts to speculate that Bitcoin could eclipse gold’s market capitalization in the future.
Bitcoin ETF Inflows Outpace Gold ETF Outflows
The two largest gold ETFs, SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), have seen net outflows in 2024. GLD and IAU have assets under management of $58 billion and $26 billion respectively, but both have experienced outflows following the launch of spot bitcoin ETFs.
In contrast, spot bitcoin ETFs have attracted nearly $10 billion in assets under management in just over a month. Bitcoin ETFs saw inflows of $777.79 million last week, while gold ETFs saw $608.24 million in net outflows, adding to the $36 billion in outflows this year.
Bitcoin’s Potential to Eclipse Gold’s Market Cap
Some analysts predict bitcoin’s market cap could reach as high as $6 trillion in the future, equal to the value of above-ground gold used for financial purposes. The bitcoin analyst PlanB forecasts bitcoin reaching $200,000 per coin by 2024-2025, equal to 26 ounces of gold.
Looking further ahead, PlanB predicts bitcoin could reach 300 ounces of gold in 2025, or $600,000 per bitcoin. This would give bitcoin a market cap of $12 trillion, approaching gold’s market cap of over $13 trillion.
Conclusion
The rapid inflows into bitcoin ETFs versus outflows from gold ETFs show a shift in investor preferences. Analysts predict this trend could continue, with Bitcoin potentially eclipsing gold’s market capitalization in the coming years if its price appreciates substantially. However, the future trajectory of both asset classes remains uncertain.
