tl;dr
The investment landscape is undergoing a significant shift as Bitcoin-focused ETFs experience unprecedented inflows while gold ETFs see substantial outflows. Data indicates that Bitcoin ETFs have seen a significant increase in inflows, while gold ETFs have experienced outflows totaling $2.4 billion....
Investment Landscape: Bitcoin ETF Inflows vs. Gold ETF Outflows
The investment landscape is undergoing a significant shift as Bitcoin-focused ETFs experience unprecedented inflows while gold ETFs see substantial outflows. Data indicates that Bitcoin ETFs have seen a significant increase in inflows, while gold ETFs have experienced outflows totaling $2.4 billion. This trend is further evidenced by Bitcoin's impressive performance, reaching a two-year high of $52,519, while gold has seen a 3.3% decrease. However, there is a suggestion that the movement away from gold ETFs might not be entirely towards Bitcoin, as it could be driven more by US equity FOMO. Additionally, there is a growing debate between traditional and digital asset investors about this shift in the investment landscape.
GOLD OUT, BITCOIN IN
Data from Farside reveals that since the approval of the 10 spot Bitcoin ETFs on January 11, there has been an aggregate inflow of $4.115 billion, accompanied by record trading volumes. Just yesterday, all ETFs saw net inflows of over 12,000, BlackRock alone saw a 10,000 BTC inflow. Notably, all spot Bitcoin ETFs saw three consecutive days over 10,000 BTC net inflows.
In sharp contrast, the 14 leading gold ETFs have experienced outflows totaling $2.4 billion in 2024, with Bloomberg intelligence analyst Eric Balchunas pointing out that the most substantial outflows were from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust, amounting to $230.4 million and $423.6 million, respectively.
GOLD BUGS STILL IN DISBELIEF
This evolving investment landscape is not only about shifting assets but also about changing perceptions. Jameson Lopp, a Bitcoin pioneer, provocatively asked jokingly about the well-being of gold investor Peter Schiff, highlighting the growing debate between traditional and digital asset investors. Mike Alfred commented:
Bitcoin is ripping, 4% in the last day and 25% over the last month. Gold, predictably, is red on the day and down 3.3% ytd. I am waiting for the next asinine Peter Schiff tweet when he says something idiotic about how Bitcoin is about to crash because it’s gone up so much.
Indeed, Schiff is still denying the BTC rally. Just three days ago, he claimed , “It looks like another classic pump-and-dump is going on with Bitcoin and the ETF. The four-day conference kicked-off on Super Bowl Sunday and ends on Valentine’s Day. There’s a lot of hype surrounding the newly listed Bitcoin ETFs. I wonder when the massacre will begin.”
At press time, BTC traded at $52,297.
Bitcoin price
BTC price, 1-week chart | Source: BTCUSD on TradingView.com
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