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An interesting development is that leading gold-tracking ETFs have noted a significant outflow of funds, reaching $2.39 billion. The decline in prices of gold exchange-traded funds indicates a challenging period for the industry currently.
Meanwhile, there has been an intensifying interest in Bitcoin spot exchange-traded funds, with inflows reaching $3.89 billion in 2024.
Gold ETFs are losing appeal.
Source: Finbold
The report indicates a recent significant drop in gold prices. Since the beginning of 2024, gold prices have plummeted by 3.9%, further exacerbating future gaps.
According to Bloomberg analyst Eric Balchunas, 14 leading gold ETFs have seen a downward trend, characterized by substantial fund outflows. Only a few ETFs have observed minor inflows, indicating a significant price gap.
Despite gold-centered ETFs struggling to cope with persistent fund outflows, Bitcoin spot ETFs seem to have become a popular investment tool for consumers.
The total inflow into the BTC spot ETF industry has reached $3.89 billion. The apparent difference between gold and Bitcoin ETFs marks an experimental shift, indicating increased interest among users in exploring new alternatives. While some experts speculate that this shift will continue for a while, Bloomberg analyst Eric Balchunas doesn't seem concerned about the development.
Balchunas believes that the sudden outflow from gold may be driven by FOMO in the US stock market, a colloquial sentiment forcing users to capitalize on the hype generated by Bitcoin ETF launches.
Considering the current developments, Bitcoin seems to be emerging as an alternative asset class for investors to explore. Meanwhile, Bitcoin is priced at $51,665, benefiting from the bullish sentiment spurred by the launch of Bitcoin spot exchange-traded funds.
Altcoin ETFs follow suit
The explosive launch of BTC spot ETFs has sparked popular demand for other altcoin ETFs to follow suit. According to popular podcaster Lark Davis, altcoin ETFs could soon become the next big thing.
Davis shares, "What happens when we get an Ethereum ETF? What do you think the market is almost immediately going to turn to? We're going to get more altcoin ETFs."
However, given the overall stance of the US Securities and Exchange Commission on cryptocurrency-supported ETFs, this development seems to require some time to gain traction. |
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Post time 21-2-2024 20:51:58
