Key highlights:
- Bloomberg analyst Eric Balchunas says Bitcoin ETFs could eventually become three times the size of gold ETFs
- Gold ETFs held a record of 4,189 tonnes of gold worth about $615 billion globally, giving Bitcoin ETFs a potential $1.8 trillion target under Balchunas’ thesis
- Balchunas expects Bitcoin’s declining volatility and correlation with traditional markets to make the asset accessible to large institutional investors
Bloomberg senior ETF analyst Eric Balchunas has predicted that
Finally, Balchunas argued that Bitcoin ETFs will triple gold given their distribution firepower to investors. He pointed to dozens of wholesalers who understand both cryptocurrency and traditional investors and are actively educating clients about Bitcoin ETFs.
Major asset managers have already brought Bitcoin exposure onto traditional investment platforms, helping investors access the cryptocurrency through familiar brokerage accounts. US spot Bitcoin ETFs have also accumulated tens of billions of dollars in net inflows since their launch in January 2024.
Gold will continue to forge on
In a related post on X, Balchunas disclosed that the tripling of Bitcoin ETFs relative to gold will not dull the yellow metal’s shine. Balchunas cited gold’s longevity of over 5,000 years, predicting it will remain a store of value alongside Bitcoin:
“Gold isn’t going anywhere. It’s been around for 5,000 years. It’s mentioned in the Bible 400 times. I can’t not respect that. I just think it will be lapped by bitcoin ETFs as a category long term.”
Despite its roots in antiquity, gold is staking its claim in the modern era. Early in the week, the UK’s FCA revealed plans for a playbook to govern tokenized gold, with service providers rolling out gold-themed offerings for consumers.
Source:: Bloomberg Analyst Tips Bitcoin ETFs To Triple Gold – Here's The Trigger