Bitcoin ETFs Can Overtake Gold ETFs This Summer If This Happens (2024)

FAQs

Will Bitcoin pass gold? ›

If bitcoin (BTC) were to match gold's allocation in investor portfolios, its market cap should rise to $3.3 trillion, implying a more than doubling of its price, but that probably won't happen because of the cryptocurrency's risk and heightened volatility, JPMorgan (JPM) said in a research report.

However, investing in crypto ETFs is not without risk. The market is volatile, with prices fluctuating significantly in short periods. In addition, the regulatory landscape for crypto is evolving, and changes in regulations will undoubtedly impact the performance and availability of these ETFs.

If you're looking for an asset that you can quickly move in and out of without losing value in a short time (like Bitcoin can), gold might be a better option. However, stablecoins like Tether (USDT) maintain their value over short periods because fiat currency and other cash-like instruments are held in reserve.

A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.

Key Points. Gold's supply can increase with demand shocks, while Bitcoin's ultimate supply is capped. Bitcoin is easier to store, transport, and transact with. Over the past few years, Bitcoin has been able to significantly increase one's purchasing power.

If long-term price performance is your only investment goal, then the new Bitcoin ETFs make a lot of sense. However, you could prefer direct-asset ownership of Bitcoin if you are concerned about the regulatory or legal aspects of crypto.

Spot bitcoin ETFs hold actual bitcoin, while bitcoin futures ETFs do not. Spot ETFs are designed to hold an equivalent amount of the underlying asset that is represented by the ETF. This gives investors direct exposure to the spot price of bitcoin without having to purchase or store it themselves.

Key Points. There are several benefits to owning the actual Bitcoin by purchasing through a cryptocurrency exchange. In some situations, the ETFs offer investors all they need. The decision between the two will come down to personal preference and technological savvy.

Rarity: Platinum is rarer than both gold and silver, which may provide it with higher long-term value potential. Diversification: Platinum can diversify your precious metals portfolio beyond the more commonly held gold and silver.

How much is an actual gold Bitcoin worth? ›

All the same, bitcoin enthusiasts point out that although the digital currency may be volatile, it has significantly outperformed traditional safe haven assets such as gold and US government bonds over the past four years of turmoil, which have witnessed a global pandemic and an inflationary surge.

The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.80B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 12.08%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.

Clients looking for spot Bitcoin ETFs can find these and other third-party ETF and mutual fund products available at Schwab. These funds invest in cryptocurrencies, cryptocurrency futures contracts, or equities related to cryptocurrencies.

Sarathy concurs that there are risks involved with investing in these cryptocurrencies, including price volatility, cybersecurity concerns and a lack of regulations compared to traditional currency. Ultimately, it's up to each individual user how much risk they want to take.

A rise in the demand for gold, traditionally motivated by economic or financial uncertainty, increases the demand for Bitcoin. This indicates a radical change in the properties of the cryptocurrency which became a diversifier and a hedge.

Hedging effects of bitcoin and gold in G7 stock markets are analyzed. Wavelet analysis is used to examine the effects in time–frequency domains. We find that bitcoin's short-term risk hedging is stronger than that of gold. Gold is a better risk hedging instrument than bitcoin in the long term.

As gold bullion has been around for hundreds of years it's considered a relatively stable investment and safe haven during times of inflation. While it does go up and down, its swings are not as volatile as what's seen with bitcoin. One of the biggest drivers of volatility is an assets overall market cap size.