The increasing amount of money flowing into digital assets indicates a change in investor focus away from traditional safe-haven assets such as gold.
The iShares Bitcoin Trust (IBIT) from BlackRock has exceeded the assets under management (AUM) of its Gold ETF counterpart, the iShares Gold Trust (IAU). IBIT now holds approximately $33.1 billion in AUM, surpassing IAU which currently has around $32.9 billion in assets.Launched in early 2024, IBIT gathered over $10 billion in assets within its initial two months of trading, a feat that the first gold ETF took roughly two years to accomplish.
Farside Investors' data shows that IBIT has received more than $27 billion in net inflows since it was introduced, including a remarkable $1.1 billion added in just one day on November 7.
Several factors have contributed to the increase in IBIT's assets, such as the robust demand from both retail and institutional investors. Additionally, the recent upsurge in Bitcoin prices has played a significant role in driving this growth, with Bitcoin reaching a record high of $76,800 yesterday, according to data from CoinGecko.
The success of Bitcoin ETFs compared to gold ETFs is remarkable, especially considering that gold has traditionally been a safe-haven asset. The growing interest in Bitcoin indicates a changing sentiment, with more individuals and institutions viewing the top cryptocurrency as a viable alternative or supplement to conventional assets such as gold.
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