The year 2024 has marked a significant breakthrough for digital assets, particularly for bitcoin (BTC), driven by increased institutional adoption. For the first time in history, U.S.-listed spot bitcoin ETFs have surpassed U.S.-listed Gold ETFs in terms of assets under management (AUM).
U.S. Listed Spot Bitcoin ETFs on the Verge of Surpassing Gold ETFs
The year 2024 has marked a significant breakthrough for digital assets, particularly for bitcoin (BTC), driven by increased institutional adoption. This shift has occurred through two key avenues: first, the integration of bitcoin into public balance sheets as a treasury asset, and second, the success of U.S. spot-listed exchange-traded funds (ETFs) that have amassed over 1 million BTC.
Bitcoin ETFs Surpass Gold ETFs in Assets Under Management
A report from K33 Research reveals that U.S.-listed bitcoin ETFs have surpassed U.S.-listed Gold ETFs in terms of assets under management (AUM), including leveraged products such as futures-based ETFs. As of Dec. 17, Bitcoin ETFs reached AUM worth $129.25 billion, edging out Gold ETF AUM at $128.88 billion.
Spot-Based Products: Gold Remains Slightly Ahead
However, when comparing spot-based products exclusively, Gold remains slightly ahead. According to Senior Bloomberg ETF Analyst Eric Balchunas, U.S. bitcoin spot ETFs hold $120 billion in AUM compared to $125 billion for Gold ETFs.
CME Activity Remains Strong
The CME exchange, primarily used by institutions, continues to have strong activity, with futures open interest approaching new highs, with 212,635 BTC in open interest contracts. The basis trade premium has continued to rise, reaching 16.4% — the highest level since November 2023.
Significant Upcoming Events
The report notes that January contracts are trading at sharp premiums relative to December contracts, with the contango widening to 1.5% on Monday — the highest next-month premium recorded since November 2023. The upcoming December roll is expected to be significant, as several upcoming banking holidays may contribute to a further widening of the January premium.
Net Inflows Continue
The momentum has continued for the past month, as the U.S. spot-listed bitcoin ETFs have seen net inflows every day since Nov. 27, totaling $6.5 billion, according to Farside data. It is essential to note that as the basis trade premium continues to widen and with a growing amount of open interest contracts on the CME, a large portion of these net inflows are part of the cash and carry trade.
