US Bitcoin ETF Assets Surpass $100 Billion, On Track to Overtake Gold ETFs

Bitcoin exchange-traded funds (ETFs) in the United States have achieved a significant milestone, collectively managing over $104 billion in assets as of November 21, 2024. The surge is fueled by growing investor interest in Bitcoin and optimism surrounding President-elect Donald Trump’s pro-crypto agenda.

Bitcoin ETFs Surpass $100 Billion Milestone

According to data from Bloomberg Intelligence, the combined net assets of U.S. Bitcoin ETFs have crossed the $100 billion threshold for the first time. The inflows accelerated following the U.S. presidential election, where Trump’s victory was seen as a positive catalyst for the crypto market. In November alone, Bitcoin ETFs saw $5 billion in fresh inflows, driven by renewed investor confidence in the future of digital assets.

Bryan Armour, director of passive strategies research at Morningstar, stated that Trump’s win contributed to the boost, saying, “A more positive outlook for the future of Bitcoin after Trump’s election win… boosted performance and brought over $5 billion of inflows.”

Bitcoin ETFs Set to Surpass Gold ETFs

Bitcoin ETFs are rapidly closing the gap on gold ETFs in terms of assets under management (AUM). As of November 21, Bitcoin ETFs collectively manage $104 billion, while gold ETFs hold approximately $120 billion. Analysts suggest that Bitcoin ETFs could surpass gold ETFs in total assets in the coming months.

Bloomberg Intelligence ETF analyst Eric Balchunas noted that Bitcoin ETFs are “now 97% of the way to passing Satoshi as the biggest holder and 82% of the way to passing gold ETFs.” This highlights Bitcoin’s growing dominance as an investment asset, with its ETFs set to challenge the status of gold as the go-to store of value for institutional investors.

BlackRock’s iShares Bitcoin Trust (IBIT) Leads the Pack

BlackRock’s iShares Bitcoin Trust (IBIT) remains the most influential Bitcoin ETF, capturing $30 billion in inflows since its January 2024 launch. IBIT also recently surpassed BlackRock’s own gold ETF in terms of assets under management, a symbolic milestone for the broader Bitcoin market.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) is the second-largest Bitcoin ETF, recording inflows of more than $11 billion in 2024. This competition between BlackRock and Fidelity highlights the race among financial giants to control the future of crypto investment products.

On November 6, the day after Trump’s election win, IBIT experienced its highest trading volume ever, according to Bloomberg’s Eric Balchunas. On November 7, IBIT registered $1.1 billion in inflows, rebounding from two consecutive days of outflows totaling $113.3 million, according to Farside data.

Bitcoin’s Price Surge Drives Inflows

Bitcoin’s price increase has further fueled investor interest. As of November 21, Bitcoin was trading at over $96,000, marking a nearly 120% rise since the beginning of 2024. Analysts at MV Global predict that Bitcoin could reach $150,000 per coin, driven by growing institutional adoption, ETF inflows, and supportive regulatory developments under the incoming Trump administration.

The surge in Bitcoin’s price and ETF inflows reflects broader market sentiment. Investors are reportedly turning to both gold and Bitcoin as part of a “debasement trade,” hedging against economic uncertainty and geopolitical instability. A report from JPMorgan warned that investors are bracing for a “catastrophic scenario” due to global tensions, prompting them to diversify into hard assets like gold and Bitcoin.

Implications for the Crypto Market

Bitcoin’s rise to over $100 billion in ETF assets represents a shift in investor sentiment. The introduction of spot Bitcoin ETFs earlier this year opened new doors for institutional investors, providing a regulated and accessible way to gain exposure to Bitcoin without the need for direct ownership. The resulting capital inflows have bolstered Bitcoin’s price and elevated the status of Bitcoin ETFs as a legitimate financial product.

The rapid accumulation of assets by Bitcoin ETFs is also a reflection of the growing acceptance of Bitcoin as a mainstream financial asset. Analysts predict that if Bitcoin ETFs surpass gold ETFs in total assets, it could signify a paradigm shift in how investors perceive Bitcoin relative to traditional safe-haven assets like gold.

The rise of U.S. Bitcoin ETFs to over $100 billion in assets signals a landmark moment for the crypto industry. As institutional investors increase their exposure to Bitcoin via ETFs, the market is poised for further growth. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund have led the charge, capturing billions in inflows. With Bitcoin ETFs now on track to surpass gold ETFs in total assets, the narrative around Bitcoin as “digital gold” gains even more traction. As investors brace for global uncertainty, Bitcoin’s role as a hedge against financial instability continues to grow, positioning it as a core asset for the future of institutional finance.