Key Insights

  • The younger investor base, growing institutional adoption and stronger sales efforts could push Bitcoin ETFs ahead of gold ETFs.
  • JPMorgan analysts see room for stronger Bitcoin ETF demand, noting elevated futures positioning.
  • BlackRock’s IBIT led inflows with $183.6 million on Thursday, Sept. 17.

Spot Bitcoin ETFs in the United States resumed net inflows, recording $159 million on Thursday, Sept. 17.

Market analysts are increasingly comparing long-term Bitcoin ETF growth with gold ETFs as institutional demand develops.

Bitcoin ETFs Could Grow Beyond Gold ETFs

Eric Balchunas, senior ETF analyst at Bloomberg, said Bitcoin ETFs could ultimately grow to three times the size of gold ETFs during a recent television interview with Bitcoin Magazine.

Balchunas said younger investors are more likely to use Bitcoin as a store of value as their wealth grows.

He also pointed to greater institutional adoption potential as Bitcoin matures and volatility declines.

Bitcoin ETFs currently hold more than $100 billion in assets, with BlackRock’s iShares Bitcoin Trust accounting for the largest share.

World Gold Council data places global gold ETF assets at roughly $615 billion.

Balchunas also cited stronger sales and education efforts around Bitcoin ETFs compared with gold products.

JPMorgan Sees Room for Bitcoin ETF Demand Recovery

JPMorgan analysts led by Nikolaos Panigirtzoglou said Bitcoin could receive more support than gold if investors reduce hedges through exchange-traded funds.

Bitcoin and gold ETFs both recorded inflows after the Federal Reserve meeting in late July as the debasement trade returned.

That trade weakened over the past week as inflation-adjusted bond yields rose and the Senate failed to advance the CLARITY Act.

Gold ETF demand recovered more strongly than Bitcoin ETF demand.

JPMorgan noted that gold ETFs had recovered earlier outflows while Bitcoin ETFs had recovered only about half of theirs.

The analysts said Bitcoin ETF demand had weakened in recent days, leaving more room for a rebound if market conditions improve.

They also noted that futures positioning remained elevated in both gold and Bitcoin, indicating continued institutional participation.

A key difference remained ETF short interest. Short interest in BlackRock’s IBIT stayed near its highest level of the year, while short interest in SPDR Gold Shares remained below its historical average.

Bitcoin ETFs Return to Net Inflows

Farside Investors data showed U.S. spot Bitcoin ETFs recorded $159 million in net inflows on Sept. 17.

BlackRock’s IBIT led with $183.66 million in inflows.

Fidelity’s FBTC recorded $16.64 million in net outflows, while VanEck’s HODL saw $7.57 million in outflows.

The remaining listed Bitcoin ETFs recorded zero net flows for the day.

The reversal came after a period of net outflows earlier in September.

Crypto journalist and market analyst covering digital assets, markets and financial technology.