In an interesting development, leading gold-tracking ETFs have noted considerable outflows amounting to $2.39 billion. The descent of prices noted in gold ETFs refers to a challenging period that the industry is facing at the moment.
At the same time, interest in Bitcoin spot ETFs has intensified, with inflows amounting to $3.89 billion in 2024.
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Gold ETFs are losing their charm.
The report suggests that the prices of gold have recently noted a sharp decline. A striking decrease of 3.9% was observed in the price of gold since the beginning of 2024, intensifying the difference further ahead.
Per Bloomberg analyst Eric Balchunas, 14 leading gold ETFs have noted a downward trend, marked by considerable outflows. Only a few ETFs have observed minor inflows, signaling a sharp price disparity.
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Bitcoin ETFs are gaining momentum.
While gold-centric ETFs are struggling with consistent outflows, Bitcoin Spot ETFs seem to have emerged as popular investment tools for consumers.
The aggregate inflows observed in the BTC-spot ETF industry have amounted to $3.89 billion. The stark difference between gold and Bitcoin ETF signals an experimental turn, suggesting users have increased interest in exploring new alternatives. While several experts are speculating that this shift will last a while, Bloomberg analyst Eric Balchunas seems unfazed by the development.
Balchunas opined that the sudden outflow from gold can be driven by US equity FOMO, a colloquial sentiment compelling users to leverage the hype caused by the launch of Bitcoin ETFs.
Noting the current developments, it seems that Bitcoin is emerging as an alternative asset class for investors to explore.At the same time, Bitcoin sits at $51,665 basking in the bullish sentiments triggered by the launch of BTC spot ETFs.
Altcoin ETFs to follow suit?
The exploding launch of BTC spot ETFs has triggered a popular demand for other altcoin ETFs to follow suit. Per Lark Davis, a popular podcaster, altcoin ETFs could soon become the next big thing.
“What happens when we get an Ethereum ETF? What do you think the market’s going to pivot to almost immediately? That we’re going to get more altcoin ETFs.” Davis shared.
However, with the current stance of the SEC over crypto-backed ETFs in general, it seems that this development may take a while to gain prominence.