Analyst: Bitcoin ETF Could Surpass Gold ETF in Size, Highlighting Value of Allocation

BlockBeats News, April 4th. Bloomberg ETF analyst James Seyffart stated that as market demand continues to grow, the future assets under management (AUM) of a Bitcoin spot ETF is expected to surpass that of a gold ETF.

Seyffart pointed out that Bitcoin's use in portfolios is more diverse, as it can be seen as "digital gold," a store of value tool, as well as having attributes such as asset allocation diversification, liquidity trading, and growth-risk asset, while the investment logic for gold is relatively singular.

In terms of fund flows, US gold ETFs have recently seen significant outflows, with a net outflow of about $2.92 billion in March; during the same period, Bitcoin spot ETFs saw a net inflow of about $1.32 billion, indicating a shift in fund preferences.

Despite fund flow divergence, Bitcoin and gold prices have shown similar trends recently. In the past 30 days, Bitcoin's price has dropped by about 8.07%, while gold's price has dropped by about 8.25%.
Market views believe that as investors' demand for digital asset allocations increases, Bitcoin ETFs are gradually transitioning from "alternative assets" to mainstream asset allocation tools, and their long-term growth potential is being reassessed.