- An ETC Group expert stated that bitcoin may surpass gold as a hedge asset.
- He pointed out that the latter’s gold-based ETP has seen net outflows since the beginning of 2024.
- In contrast, spot bitcoin-ETFs have seen inflows.
The inflow of funds into spot bitcoin-ETFs on the background of capital outflow from gold-based ETPs may be a sign of changes in asset positioning. This is reported by The Block with reference to the head of research at ETC Group Andre Dragosz.
The expert believes that bitcoin in the future may surpass gold as the main hedge asset:
“This can be regarded as a prerequisite for bitcoin to take the “crown” from gold as the main hedge asset.”
Analysts at Ryze Labs agree with him. They pointed out that 14 major gold-based ETPs have seen net outflows of funds since the beginning of 2024. Spot bitcoin-ETFs, in turn, have shown the opposite trend.
According to ByteTree, since January 2024, gold-based ETPs have seen net outflows of $12.6 billion:
Over the same period, net inflows on spot bitcoin-ETFs totaled $5.04 billion, according to SoSo Value. Excluding the GBTC fund, that figure would already be $12.05 billion.
Dragosz expects this trend to continue going forward. Bitcoin-based ETPs, both spot and futures, could outperform funds investing in gold in the next two years, he said.
At the time of writing, bitcoin is trading at $52,283, according to TradingView. There is an uptrend in the market:
