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Bitcoin ETFs Dominate With Strong Inflows, Leaving Gold ETFs In The Dust

Published 07/03/2024, 13:55
Updated 07/03/2024, 15:10
© Reuters.  Bitcoin ETFs Dominate With Strong Inflows, Leaving Gold ETFs In The Dust
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Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

Significant interest in newly launched Bitcoin spot ETFs continued on Wednesday, with total net inflows reaching $332 million on March 6.

This surge comes despite a net outflow of $276 million from the long-established Grayscale Bitcoin Trust (OTC: GBTC), according to data from SoSoValue.

BlackRock's iShares Bitcoin Trust (NASDAQ: IBIT) emerged as the leader in net inflows, attracting $281 million and bringing its total historical net inflows to $9.45 billion.

The approval of Bitcoin's first spot ETF in January 2024 marked a pivotal moment for the apex cryptocurrency, with its price at $46,376 at the time of approval.

Also Read: Pay With Bitcoin For This 'Unbreakable' Mobile Network: But Can It Stop SIM Swaps?

Ki Young Ju, founder and CEO of Crypto Quant, drew parallels between this milestone and the listing of the first gold ETF by the NYSE in November 2004, noting the significant impact of such financial instruments — the spot gold price never reached its pre-ETF lows.

Nate Geraci, President at ETF Store, provided further context to the burgeoning interest in Bitcoin spot ETFs: "total flows into 9 new spot Bitcoin ETFs over the past 2 months exceed total flows into all physical gold ETFs over the past 5 years," Geraci highlighted.

This comparison is particularly striking given that physical gold ETFs hold nearly $100 billion in Assets Under Management (AUM).

The rapid capital inflow into Bitcoin ETFs, surpassing the five-year accumulation in physical gold ETFs, underscores the shifting dynamics in investment preferences and the increasing mainstream acceptance of digital assets.

Read Next: How Dogecoin, Shiba Inu Plan To Fight Off The Challenge Of Bonk, Dogwifhat

Image created using artificial intelligence with Midjourney.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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