Less than a year since its launch! The US BTC ETF surpasses the gold ETF, will the leader of the hedge be replaced?

BTC ETF is on the rise, marking another milestone in the US market

The U.S. cryptocurrency market has recently seen major news: the assets under management (AUM) of BTC ETF in the U.S. officially surpassed the gold ETF on December 16th, setting a historic record. According to data released by K33 Research, the total assets of BTC ETF exceeded 129.3 billion yuan on that day, surpassing the level of gold ETF at about 128.9 billion yuan for the first time. This is undoubtedly a revolutionary change for the global investment market and also demonstrates the increasingly solid positioning of BTC as the “digital gold”.

Source: K33 Reasearch The management assets of BTC ETF in the United States officially surpassed the gold ETF on December 16th.

It is important to know that the gold ETF has a development history of more than 20 years and is a recognized long-term hedging asset tool for investors. However, the BTC ETF has been launched for less than a year and has already achieved outstanding performance. This means that products mainly based on BTC are no longer the products of a niche speculation, but are fully integrating into mainstream investment portfolios. Experts analyze that the reasons behind this include the favorable trend of the cryptocurrency market after 2024, deepening concerns about inflation and government deficits, and the possibility of providing clearer regulation and policy benefits after the new US election.

Leader BlackRock’s BTC Trust Fund overtakes its own gold ETF

At this stage of the development of BTC ETF, the iShares Bitcoin Trust (IBIT) under the global asset management giant BlackRock is the most eye-catching, with its assets under management exceeding 60 billion yuan, surpassing BlackRock’s own iShares Gold Trust (IAU) earlier this year. This not only demonstrates the rapid growth of BTC ETF in attracting funds, but also shows that institutional capital is increasingly favoring digital assets, believing that BTC can compete with gold in terms of hedging capabilities.

In addition, market observers also pointed out that the US BTC ETF has seen continuous net inflows of funds this year. Some analysts are paying more attention to the popularity of ‘debasement trade’ in the investment community against the backdrop of inflation concerns and increased geopolitical uncertainties—where investors seek reliable stores of value from the expanding currency supply. BTC and gold have naturally become the core targets of this strategy, but the growth rate of BTC ETF has now overshadowed gold ETF.

Spot and derivative financial products ETF compete, small gaps show potential

Despite the overall BTC ETF surpassing the gold ETF, comparing only the spot ETF, the market value of the gold spot ETF is about 125 billion yuan, slightly higher than the approximately 120 billion yuan of the BTC spot ETF. Bloomberg analyst Eric Balchunas pointed out that considering the BTC spot ETF has only been around for 11 months, being able to compete with the two trillion assets of the gold ETF can be considered a ‘significant achievement’. With more cryptocurrency ETFs set to launch next year, including dual-track products for BTC and Ethereum, and possibly even a Litecoin ($LTC) ETF in the future, the market scope will be broader. It remains to be seen whether BTC can further expand its advantage at that time.

Image source: X Bloomberg analyst Eric Balchunas believes that BTC spot ETF, which has only been launched for 11 months, can compete with gold ETF, which is a “remarkable achievement”.

Battle of the leading safe-haven assets, BTC remains strong

Gold has long been regarded as the ultimate safe-haven asset, but data has shown that some funds are turning to Bitcoin. In addition to the rising price and inflow of funds, subtle policy and economic environments are also driving factors. Market analysis suggests that the future political and policy environment in the United States may be more conducive to the development of the cryptocurrency industry, and clearer regulations and increased regulatory compliance will stimulate more funds to invest in Bitcoin ETFs, thereby driving the industry into mainstream investment portfolios.

The current BTC price has shown a significant increase and is gradually gaining favor from institutional investors. If the overall market environment continues to support the development of cryptocurrencies in the future, the role of BTC will undoubtedly become more stable. As the practice of the concept of ‘digital gold’, the competition between BTC ETF and gold ETF may just be the beginning of a long-term trend. It is expected within the industry that after 2025, if regulations and infrastructure become more mature, BTC will gain more territory in the hedge asset industry and rewrite the traditional financial landscape.

In short, the milestone of BTC ETF surpassing the gold ETF in asset size is not only a reflection of the strength of the crypto industry, but also a symbol of the shift in market preference. In the coming year, the showdown between the crypto industry and traditional hedge assets will continue, and investors will need to carefully choose the timing and observe the subsequent changes in this trend.

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this is at your own risk.

“Less than a year since its launch! The US BTCETF surpasses the Gold ETF. Is the head of hedging changing?” This article was first published in “Crypto City”