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Eddy S.
In December 2024, a landmark event shook the investment world: Bitcoin exchange-traded funds (ETFs) surpassed Gold ETFs in terms of assets under management (AUM) in the United States. This achievement is all the more impressive given that Bitcoin ETFs only launched in January 2024, while Gold ETFs have been around for over two decades.
The meteoric growth of Bitcoin ETFs
Bitcoin is often referred to as “digital gold” due to its similar properties as a store of value. Unlike gold, which can increase in supply, BTC has a limited supply of 21 million coins, making it particularly attractive during times of inflation. This feature, combined with growing demand, has led to a rapid increase in Bitcoin ETF assets under management.
This rise in power is attributed to several factors. First, the approval of Bitcoin ETFs by regulators paved the way for broader adoption of cryptocurrencies in traditional financial markets. Financial giants like BlackRock and Fidelity have launched their own BTC ETFs, bringing credibility and attracting a wide range of investors.
The overtaking of Gold ETFs by BTC ETFs marks a paradigm shift in investor preferences. Indeed, young investors see bitcoin as a modern and decentralized alternative to traditional assets. This trend reflects growing confidence in digital assets and a desire to diversify investment portfolios.
Future outlook
The future of Bitcoin ETFs looks bright. With steady investment flows and growing institutional demand, BTC ETFs could continue to dominate the ETF market. Experts predict that this trend will continue, strengthening BTC’s position as a compelling asset in the global financial landscape.
Finally, the overtaking of Gold ETFs by Bitcoin ETFs is a historic event that highlights the rapid evolution of investor preferences and the growing acceptance of cryptocurrencies in traditional financial markets. This turning point could well mark the start of a new era for digital investments, illustrated by MicroStrategy’s bet on Bitcoin shaking up Wall Street.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
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