BlackRock's spot Bitcoin ETF (IBIT) has attracted $6.96 billion in net inflows since the beginning of 2024, surpassing the world's largest physically backed gold ETF, SPDR Gold Trust (GLD), which saw $6.5 billion in inflows. This data comes from Bloomberg's senior ETF analyst, Eric Balchunas. IBIT ranks sixth among all ETFs for inflows this year.
Despite Bitcoin's 3.8% gain this year lagging behind gold's nearly 29% surge, institutional investors are showing strong confidence in Bitcoin's long-term potential. Gold's rise to $3,384 is attributed to international trade disputes, inflation concerns, and geopolitical tensions. Bitcoin, despite hitting a record high in January, is currently more than 10% below that peak.
Eric Balchunas noted on X that IBIT's strong inflows are a positive sign for Bitcoin's long-term prospects. He anticipates that Bitcoin ETFs will triple gold's assets under management in three to five years.
This article is based on our author's analysis of materials taken from the following resources: Bloomberg.