BlackRock’s spot bitcoin ETF (IBIT) has been pulling in the big bucks this year, topping even the world’s largest gold fund in inflows. Despite gold’s impressive 29% surge compared to bitcoin’s measly 3.8% gain, investors are still flocking to the cryptocurrency like it’s nobody’s business.
According to data from Bloomberg’s senior ETF analyst, Eric Balchunas, IBIT has raked in a cool $6.96 billion in inflows since the beginning of the year, making it the sixth-largest ETF in terms of inflows. On the other hand, the SPDR Gold Trust (GLD), which is the biggest physically backed gold ETF in the world, slipped down to the number seven spot with net inflows of $6.5 billion. Not really sure why this matters, but hey, it’s good to know, right?
The fact that IBIT is outperforming gold ETFs shows that institutions are still feeling pretty bullish about bitcoin’s long-term potential, despite its lackluster price performance. Gold has been on a tear, climbing up to $3,384 due to all sorts of global issues like trade disputes, inflation worries, and geopolitical tensions. Meanwhile, BTC, often referred to as digital gold, reached a record high back in January but has since dropped more than 10% below that level. Maybe it’s just me, but that’s quite the rollercoaster ride, huh?
Balchunas himself seems pretty optimistic about the future of bitcoin ETFs, predicting that they will outshine gold ETFs by three to five times in the next few years. Not really sure what his crystal ball is saying, but it sounds like he’s pretty confident in bitcoin’s potential. Good for him, I guess.
Overall, it’s been a wild ride for both gold and bitcoin this year, with one shining bright and the other struggling to keep up. Who knows what the future holds for these two assets, but one thing’s for sure: investors are definitely keeping their eyes on the prize. And hey, maybe that’s all that really matters in the end.
