Download App
iOS & Android

Bitcoin’s spot ETFs make a splash, but can their AUM surpass gold ETFs?

The surge of spot Bitcoin BTC $41,584 exchange-traded funds (ETFs) has become a focal point in financial markets, fueling speculation about their potential to outshine traditional assets like gold. ETFs are conveniently bought and sold on regular stock exchanges, simplifying the process for everyday investors to trade Bitcoin using their standard brokerage accounts. 
Another benefit is these instruments are subject to regulatory oversight, breaking down barriers for mutual funds and professional finance managers who were previously unable to directly hold and manage digital assets.

Impact of spot ETF Bitcoin on the underlying spot market

ETFs have a unique way of maintaining their prices in line with the value of the assets they represent, involving a process called creation and redemption. This process plays a crucial role in managing the number of ETF shares available in the market and ensuring that the ETF price stays closely tied to the value of the assets it represents.
Similar to the prices of other items that can be bought and sold, the price of an ETF is influenced by how much people want to buy it (demand) and how much people want to sell it (supply). Sometimes, the demand for an ETF can be very high or very low, causing its price to move away from the actual value of the assets it holds.
To prevent significant differences between the ETF price and the value of its assets, there are special players in the financial world called authorized participants. These participants have the ability to create or redeem ETF shares based on market demand. Creating new shares increases the supply, and redeeming shares decreases it. By doing this, they can help keep the ETF price in check and avoid significant deviations from the true value of the assets it represents.

Spot Bitcoin ETFs surpass expectations in volumes

Trading for spot Bitcoin ETFs began on Jan. 11, and these products amassed a record-high $14 billion in volume in the first 5 days, a feat unmatched by other commodity ETFs.
As highlighted by Eric Balchunas, Bloomberg's senior ETF analyst, the only asset class that outshone Bitcoin in terms of volumes was the one tracking either the S&P 500 or the Nasdaq-100 indexes. To put things in perspective, the U.S. stock market capitalization stands at $52 trillion, more than 60 times larger than Bitcoin’s $810 billion.
More importantly, the combined assets under management (AUM) of Bitcoin’s spot ETF issuers stand at $28 billion, surpassing the sum of silver, crude oil, and broad diversified commodities—leaving gold as the only remaining competitor.
A post on X social network by James Van Straten, lead analyst at CryptoSlate, depicts the precious metal gold as the absolute leader in the commodities segment, holding $96 billion worth under its ETF instruments.
However, the AUM of Bitcoin ETFs currently represents only 3.5% of Bitcoin’s current market capitalization. In contrast, even if one excludes the 63% of gold’s AUM used in jewelry, coins, electronics, and other applications, its ETF industry encompasses merely 2% of gold’s remaining $5 trillion market capitalization.

Gold is not the only direct competitor in the ETF industry

While the growth of Bitcoin ETFs has outpaced that of commodities-based ETFs, the bond market tells a different story, amassing an impressive $2 trillion in AUM globally. Similarly, the S&P 500 ETF industry’s AUM surpasses $1 trillion, underscoring the enduring appeal of traditional equities.
While Bitcoin ETFs haven't surpassed gold's market cap, the recent growth signals a compelling narrative. The comparison with commodities like oil, silver, and gold underscores Bitcoin's growing influence as a legitimate asset class.
As Bitcoin matures, the potential for a market cap above $1 trillion becomes increasingly plausible, affirming its position as a transformative force in the financial realm.


All Comments

Recommended for you

  • BuildBear Labs Raises $1.9M to Accelerate Development of Web3 Tools for Secure dApp Creation

    Singapore-based BuildBear Labs has secured $1.9m in funding from investors including Superscrypt, Tribe Capital, and 1kx, as well as angel investors such as Kris Kaczor and Ken Fromm. The funds will be used to speed up development of the company's flagship platform, which provides developers with testing and validation solutions for secure decentralized applications. BuildBear Labs' platform is dedicated to dApp development and testing, offering developers the ability to create customised Private Testnet sandboxes across multiple EVM and EVM-compatible blockchain networks, with features including private faucets for unlimited Native and ERC20 token minting.

  • Multiple incidents of stETH being stolen and cross-chained to the Blast mainnet were discovered. The victim’s mnemonic words/private keys may have been leaked.

    SlowMist founder, Yu Xian, posted on X platform stating that SlowMist and MistTrack have received at least four cases of stETH being stolen and cross-chain transferred to the Blast mainnet. The common feature is that a small amount of ETH transaction fee is sent from an address with obvious traces (including exchanges) to the stolen address, and then stETH is cross-chain transferred to the Blast mainnet for subsequent transfer, and finally the remaining small amount of ETH in the victim's address is transferred to different ETH addresses. The known loss exceeds 100 stETH, and it is likely a group event. The mnemonic phrase/private key of these victims must have been leaked, and the attackers lurked to start on the Blast mainnet. Previously, Scam Sniffer monitoring showed that a certain address lost over 10 BTC pledged on Aave and some PANDORA due to interaction (clicking on the signature authorization) with a fake Blast airdrop website, with a total loss of approximately $717,817.

  • Hong Kong has closed the application for virtual asset trading platform licenses, and a total of 22 virtual asset trading platforms are waiting for approval.

    The Hong Kong Securities and Futures Commission website shows that the deadline for virtual asset trading platform license applications was yesterday (29th). As of the update on February 28th, there were a total of 22 virtual asset trading platform applicants.The applicants include Bybit, OKX,,, HTX, Bullish, and others.Ammbr, BitHarbour, and Huobi HK withdrew their applications, while Meex had its application returned by the Securities and Futures Commission.In addition, virtual asset trading platforms operating in Hong Kong that did not submit license applications to the Securities and Futures Commission by yesterday (29th) must end their business in Hong Kong by May 31, 2024, at the latest.

  • In February, NFT sales on the Bitcoin chain were approximately US$301 million, down nearly 10% from the previous month.

    According to cryptoslam data, the sales of NFTs on the Bitcoin blockchain in February reached $301,983,035.33, a decrease of nearly 10% from the previous month's $335,121,977.66, and the fourth-highest monthly sales to date. The total number of NFT transactions on the Bitcoin blockchain in February was approximately 203,000, a decrease of about 18.4% from the previous month. In addition, there were 67,139 independent buyers and 57,724 independent sellers of NFTs on the Bitcoin blockchain last month.

  • Attorneys general of many U.S. states: SEC is expanding the definition of “investment contract”

    Law enforcement officials from Montana, Arkansas, Iowa, Mississippi, Nebraska, Ohio, South Dakota, and Texas submitted a joint amicus brief (or friend of the court brief) to the United States Securities and Exchange Commission in the lawsuit against Kraken on Thursday. The brief states that the states are not supporting the exchange, but rather opposing federal regulatory agencies. If the SEC wins, it may prioritize state consumer protection laws and state regulations surrounding cryptocurrencies.

  • Ethereum mainnet interaction costs rise sharply

    On March 1st, due to the heat of the market and the rise in the price of Ethereum, the interaction cost on the Ethereum mainnet has significantly increased. In the past 24 hours, the lowest average value of Gas on the Ethereum mainnet was about 50 gwei, under which:

  • Blockchain data analysis company Octav completes US$4 million in strategic financing

    According to official sources, blockchain data analysis company Octav has announced the completion of a strategic investment of $4 million. The funding round was led by high net worth individuals in the cryptocurrency space, but their identities have not been disclosed. Currently, Octav is primarily focused on unlocking the potential of on-chain data using machine learning technology to improve the accuracy of data labeling and classification. Its clients include Gelato, Request Finance, and Alchemix.

  • Validation Cloud raises $5.8M in funding for its Web3 technology platform.

    Swiss Web3 tech company, Validation Cloud, has secured $5.8 million in its inaugural funding round. The investment was led by Cadenza Ventures, with participation from Blockchain Founders Fund, Bloccelerate, Blockwall, Side Door Ventures, Metamatic, GS Futures, and AP Capital. The funds will be used to expand the company's operations and development efforts. Validation Cloud's innovative system architecture, dubbed the "Cloudflare of Web3," provides scalable and intelligent Staking, Node API, and Data services, supporting a range of ecosystems from established networks like Chainlink and Hedera to emerging ones such as Aptos, Eigenlayer, and Berachain, laying the groundwork for enterprise adoption.

  • The daily trading volume of spot Bitcoin ETF is approximately US$4.7 billion, the second highest in history

    According to Bloomberg analyst James Seyffart's data, as of Thursday's US stock market close, the daily trading volume of the US spot Bitcoin ETF was about $4.7 billion, lower than the historical high of $7.7 billion set the previous day, ranking the second highest in history. Among them:

  • AI robot company Figure completed US$675 million in financing at a valuation of US$2.6 billion, with participation from Microsoft and others

    AI robot company Figure completed a financing round of $675 million with a valuation of $2.6 billion. This round of financing was participated by Microsoft, OpenAI Startup Fund, NVIDIA, Jeff Bezos (through Bezos Expedition), Parkway Venture Capital, Intel Capital, and Align Ventures.