The realm of exchange-traded funds (ETFs) is witnessing a seismic shift as market analyst and President of the ETF Store, Nate Geraci, forecasts that spot Bitcoin ETFs are on track to eclipse Gold ETFs in cumulative net flows. This bold prediction comes at a time when Bitcoin ETFs have demonstrated remarkable performance, drawing in over $2 billion in weekly net flows.
Spot Bitcoin ETFs Set to Overtake Gold ETFs Within Two Years
This week, the financial markets were taken by storm as spot Bitcoin ETFs recorded a staggering $2.13 billion in net inflows, according to data from SoSoValue. This influx coincided with Bitcoin’s impressive 9.23% surge, bringing it tantalizingly close to the $70,000 mark, a significant resistance level. In the midst of this market excitement, Nate Geraci has boldly projected that spot Bitcoin ETFs will achieve higher cumulative total net flows than Gold ETFs within the next two years. The rapid acceleration of Bitcoin ETFs since their inception on January 11 supports this outlook.
To put this into perspective, Gold ETFs currently enjoy combined net inflows of approximately $55 billion, whereas spot Bitcoin ETFs have amassed aggregate net inflows of $20.66 billion. It’s worth noting that Bitcoin ETFs have been trading for less than a year, while Gold ETFs have been established for more than two decades. Remarkably, Bloomberg analyst Eric Balchunas recently pointed out that spot Bitcoin ETFs have already accumulated over $65 billion in total net assets, a milestone that took Gold ETFs nearly five years to reach. This impressive figure represents over 25% of the total assets under management in the global Gold ETF market.
Geraci’s prediction gains further credence when considering the limited number of spot Bitcoin ETFs, currently numbering just 11, compared to the nearly 5,000 Gold ETFs available globally. This disparity suggests that Bitcoin ETFs may indeed be poised to surpass their Gold counterparts, particularly in light of the anticipated crypto market bull run and the growing adoption of digital assets.
Bitcoin Braces for Potential Price Correction Amid Market Surge
In other developments, crypto analyst Ali Martinez has issued a cautionary note, suggesting that Bitcoin may face a “short-term dip” following its recent price rally. Bitcoin, the leading cryptocurrency, experienced an over 8% gain, climbing from around $63,000 to nearly breaching the $69,000 threshold. While the BTC market remains bullish, Martinez points out that the TD Sequential indicator is currently signaling a sell on the 4-hour chart, compounded by a bearish divergence on the Relative Strength Index (RSI). Should Bitcoin’s price decline, investors might focus on the $60,000 level, which serves as the next support zone. However, substantial selling pressure could push the cryptocurrency as low as $55,000.
As of this writing, Bitcoin is trading at $68,428, reflecting a 0.98% gain in the last 24 hours. This dynamic market environment continues to capture the attention of investors and analysts alike, as the cryptocurrency sector remains a focal point of global financial markets.
