The approval of the spot Bitcoin ETF and the ongoing continuous bullish move has not only attracted crypto enthusiasts but also significant traditional investors. Recently, Bloomberg ETF expert Eric Balchunas made a post on X (previously Twitter) that highlights that the Gold ETF category has experienced billions in outflow this year from all 14 asset managers. In contrast, Bitcoin ETFs continue to attract billions in inflows.
Gold ETF continuously bleeding following Bitcoin ETF approval
Besides, Eric also focused on which asset managers experience massive and least outflows. However, the total outflow Gold ETF experienced is somewhere around $2.4 billion this year. Out of 14 gold asset managers, only 3 firms are there which experience inflow in their Gold ETF.
VanEck Merk Gold shares experienced over $16 million, FT Vest Gold Strategy Target Income ETF experienced over $3.8 million of inflow in gold ETF, whereas Proshares UltraShort Gold experienced only $1.4 million in flow. This inflow data is very low compared to the inflow that Bitcoin ETFs are continuously experiencing.
However, the maximum outflow comes from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust as these ETFs experienced over $230.4 million and $423.6 million, respectively. At the same time, the 10 approved spot Bitcoin ETFs have remarkable inflows of around $3.90 billion this year, as per the data by Farside.
Expert’s voice over Gold ETF
Looking at these data, on February 14, 2024, the portfolio manager named Bitcoin Munger also made a post on X, where he made a statement that, “Not only is Bitcoin sucking up funds, but gold is hemorrhaging AUM at an alarming rate across many ETFs” and also added that Bitcoin is going to drink Gold’s milkshake and quite suddenly too.
Balchunas suggested that the shift from gold ETFs to Bitcoin ETFs may not be due to investors moving directly from one to the other. Instead, he believes it could be driven by a fear of missing out (FOMO) on U.S. equities. Following all these activities, James Lopp on February 15, 2024, made a post X and tagged Peter Schiff, a pro-gold. Lopp in his post shared a chart that shows following the approval of the Bitcoin ETF, spot Bitcoin ETF continuously experienced inflows whereas the Gold ETF, since then, experienced outflows.
However, in 2024, gold prices have dropped by 3.4%, reaching $1,993 per ounce on Feb. 14, while Bitcoin prices have surged by 23.5%, hitting a two-year high of $52,483 on the same day.
