Investors Shift From Gold to Bitcoin: Data

Tom Dunleavy, a financial analyst, has seen a significant shift in funding from gold, traditionally seen as a haven, to Bitcoin, a new digital asset. 

Bitcoin ETFs Challenge Gold’s Investment Supremacy

Recent data from J.P. Morgan shows a clear difference: investments in Bitcoin exchange-traded funds (ETFs) are increasing, while investments in gold ETFs are decreasing.

This is happening because spot Bitcoin ETFs were released, a significant event for the cryptocurrency market. Like how gold ETFs changed things in the early 2000s, Bitcoin ETFs question gold’s long-held reputation as the best way to store value.

According to Adam Back and other experts, Bitcoin is about to beat gold and become the most prominent product in the ETF market. The graph from J.P. Morgan shows a high flow of funds is shifting towards Bitcoin. 

In a very short time, $27.5 billion has been invested in Bitcoin ETFs, which is more than silver ETFs, and getting close to the $90 billion invested in gold ETFs.

Nicky Shiels, a representative from MKS PAMP, says that when U.S. Bitcoin ETFs went live, they brought in more than $25 billion in just 15 days, about the same amount of money as Barrick Gold, the biggest gold producer. 

Bitcoin ETFs are now the second most popular ETF vehicle in the U.S., after gold. This makes the idea that Bitcoin is the new “digital gold” more popular.

Still, Bitcoin ETFs have a long way to go before they can hit the $250 billion that investors hold in all precious metals, even though they have made much progress. Bloomberg Intelligence’s Mike McGlone gives a complex view of the future role of gold. 

In the event of an economic downturn, he says that gold’s role may change and become more important when combined with Bitcoin in a world that is becoming increasingly digital.

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