Bitcoin ETFs surpass gold ETFs with 65% year-to-date gains

Spot Bitcoin (CRYPTO:BTC) ETFs have outperformed other US ETFs, recording a 65% gain year-to-date since their launch in January, surpassing traditional investments like gold.

As of this weekend, Bitcoin ETFs have accumulated over $70 billion in assets under management (AUM), equating to more than half of the AUM held by physical gold ETFs, which currently stand at $130 billion after two decades.

According to Nate Geraci, co-founder of the ETF Institute, Bitcoin ETFs have swiftly risen in popularity among institutional investors, positioning the cryptocurrency as a notable alternative to gold.

Geraci revealed that Bitcoin ETF inflows reached $24 billion this year, compared to around $2 billion for gold ETFs.

This trend has helped drive the cryptocurrency’s gains, while gold registered a 32% return for the same period.

Matt Hougan, Chief Investment Officer at Bitwise, noted a striking comparison between BlackRock's Bitcoin Trust (IBIT) and its long-standing Gold Trust (GLD).

Since IBIT's approval in January, it has seen inflows of $25.8 billion, outpacing GLD’s $20.9 billion inflow since its inception in 2004.

Last week, Bitcoin ETFs captured most of the net flows within the crypto ETF sector, registering $2.2 billion in inflows, largely driven by speculation around the upcoming U.S. presidential election.

According to CoinShares, investor interest in Bitcoin has heightened ahead of the election, with some speculating that a Trump victory may lead to a potential new peak in Bitcoin’s value.

This trend signifies Bitcoin’s rising status as an investment choice, with Bitcoin ETFs reshaping the digital asset investment landscape within less than a year of approval, attracting substantial institutional interest.

At the time of reporting, the Bitcoin (BTC) price was $68,454.35.