Spot Bitcoin Exchange Traded Funds (ETFs) Listed in the US Are About to Overtake Gold ETFs! Here are the Details

spot listed in the US Bitcoin Exchange-traded funds (ETFs) are on the verge of overtaking their gold counterparts in assets under management (AUM), reflecting a significant shift in investor preference towards digital assets.

US Spot Bitcoin ETFs Approach Gold ETFs in AUM Race

According to Senior Bloomberg ETF Analyst Eric Balchunas, spot Bitcoin ETFs in the US have total AUM of $120 billion, while gold ETFs have $125 billion. This development underscores Bitcoin’s growing role as a key investment tool, coupled with increasing institutional adoption and increased interest in digital assets.

A report by K33 Research reveals that Bitcoin ETFs, including leveraged products and futures-based ETFs, have already surpassed gold ETFs in AUM. As of Sunday, Bitcoin ETFs reached $129.25 billion in AUM, surpassing gold ETFs with $128.88 billion.

Institutional adoption continues to be the driving force behind Bitcoin’s rise. The Chicago Mercantile Exchange (CME), a major venue for institutional Bitcoin futures trading, reported 212,635 BTC in open interest contracts, approaching record levels.

The basis premium, a measure of the futures price compared to the spot price, climbed to 16.4%, the highest level since November 2023. This indicates strong market momentum, with January contracts trading at sharp premiums over December contracts.

The December contract remains the most active contract on CME with open interest equivalent to 113,480 BTC, making the December roll a very important event. Analysts expect further price movement as several upcoming bank holidays could worsen January premiums.

Bitcoin ETFs have seen consistent net inflows totaling $6.5 billion since November 27, according to data from Farside. Much of this activity is attributed to cash and carry strategies, where investors take advantage of futures premiums to generate returns.

*This is not investment advice.