Nate Geraci, President of the ETF Store and market analyst, believes that US-based spot Bitcoin ETFs will surpass Gold ETFs in cumulative net flows. This prediction follows a remarkable performance by Bitcoin ETFs in recent days, as they have garnered over $2 billion in weekly net flows.
Spot Bitcoin ETFs Expected to Exceed Gold ETF Inflows in Two Years, Analyst Predicts
This week, spot Bitcoin ETFs created a stir in global financial markets, achieving net inflows of $2.13 billion, according to SoSoValue’s data. This significant surge in investments coincided with a 9.23% increase in Bitcoin’s price, as it neared a crucial resistance level at the $70,000 mark.
Diving into market enthusiasm, Nate Geraci has forecasted that spot Bitcoin ETFs will surpass Gold ETFs in overall cumulative net flows within the next two years. This prediction comes as no surprise given the rapid expansion of Bitcoin ETFs since their debut on January 11.
To put things into perspective, Gold ETFs currently report total net inflows of approximately $55 billion, whereas the spot Bitcoin ETFs market has recorded about $20.66 billion in aggregate net inflows. It’s worth noting that Bitcoin ETFs have only been available for less than a year, while Gold ETFs have been on the market for over two decades.
Moreover, Bloomberg analyst Eric Balchunas recently pointed out that spot Bitcoin ETFs have accumulated over $65 billion in total net assets—a milestone that Gold ETFs took almost five years to reach. This amount also represents over 25% of the total assets under management in the global Gold ETF market.
Geraci’s hypothesis is further supported by the fact that there are currently only 11 spot Bitcoin ETFs in circulation, compared to nearly 5,000 Gold ETFs globally. This suggests that Bitcoin ETFs are well-positioned to outpace their Gold counterparts, especially with the anticipated crypto market bull run and growing adoption of digital assets.
Bitcoin Poised for Price Correction Amid Market Rally
In related news, crypto analyst Ali Martinez has indicated that Bitcoin may face a “short-term dip” following its recent price surge. As previously mentioned, the leading cryptocurrency increased by over 8%, rising from around $63,000 to nearly $69,000.
Although the BTC market is currently bullish, Martinez notes that the TD sequential indicator is signaling a sell on the 4-hour chart, supported by a bearish divergence on the Relative Strength Index (RSI). Should Bitcoin’s price drop, investors may focus on the $60,000 zone, which serves as the next support level. There is a possibility that strong selling pressure could push the premier cryptocurrency down to as low as $55,000.
At the time of this writing, Bitcoin remains valued at $68,428, reflecting a 0.98% increase over the last day.
