Market analyst and ETF Store President Nate Geraci has backed US-based spot Bitcoin ETFs to overtake gold ETFs in terms of cumulative net flows. This projection comes amid impressive performance from these Bitcoin ETFs in recent days, where they attracted more than US$2 billion in weekly net flows.
Spot Bitcoin ETFs Will Overtake Gold ETFs in 2 Years, Says Analyst
Spot Bitcoin ETFs shook global financial markets this week, recording net inflows of $2.13 billion, according to SoSoValue data. This massive influx of investments occurred as Bitcoin rose 9.23%approaching a critical resistance zone at the $70,000 price mark.
Amid this market euphoria, Nate Geraci predicted spot Bitcoin ETFs will record higher total cumulative net flows than gold ETFs over the next two years. This prediction is not surprising considering the exponential growth of these Bitcoin ETFs since their launch on January 11th.
For context, gold ETFs currently boast combined net inflows of around $55 billion, compared to aggregate net inflows of $20.66 billion in the Bitcoin ETF spot market. However, Bitcoin ETFs have only been trading for a year, compared to Gold ETFs, which have been around for over 20 years.
Additionally, Bloomberg analyst Eric Balchunas recently highlighted that spot Bitcoin ETFs have accumulated more than $65 billion in total net assets, a milestone that took gold ETFs nearly five years to reach. This value is also greater than 25% of the total assets under management in global gold ETF market.
Furthermore, Geraci’s theory is further strengthened by the few 11 spot Bitcoin ETFs currently traded, compared to the nearly 5,000 gold ETFs in the global financial market. Therefore, these Bitcoin ETFs could actually be poised to outpace their gold counterparts, especially considering the upcoming crypto market bull run and current digital asset adoption levels.
Bitcoin Set for Price Correction Amid Market Surge
In other news, crypto analyst Ali Martinez shared that Bitcoin could soon experience a “short-term crash” following its recent price rally. As stated earlier, the crypto market leader gained over 8%, going from around $63,000 to almost surpassing $69,000.
Although the BTC market is currently bullish, Martinez claims that the TD sequential is currently indicating a sell signal on the 4-hour chart, which is strengthened by a bearish divergence in the Relative Strength Index (RSI). If the price of Bitcoin were to decline, investors would turn their attention to the $60,000 price zone, where its next level of support lies. Although strong selling pressure could see the top cryptocurrency trade at $55,000.
At the time of writing, Bitcoin continues to trade at $68,428, with a gain of 0.98% in the last day.