Author: Liu Kun, who loves bargain hunting

The assets under management of spot Bitcoin ETFs have exceeded 100 billion in one year The U.S. dollar is currently challenging to overtake gold ETFs.

In the past two weeks, spot Bitcoin ETFs have seen huge inflows, and BlackRock’s IBIT Bear the brunt of it. Total assets under management in Bitcoin exchange-traded funds (ETFs) topped $100 billion last week, and market analysts expect it to surpass gold ETFs by the end of the year. Of course, this will be achieved if inflows maintain momentum and Bitcoin price surges to new all-time highs.

Could a Bitcoin ETF overtake a gold ETF by the end of the year?

Cryptocurrency industry expert Nate Geraci, president of the ETF Store, said spot Bitcoin ETFs have the potential to surpass gold ETFs by the end of the year. As stated, the Bitcoin exchange-traded fund market has grown to a size of $100 billion in less than a year since its launch.

On the other hand, the gold ETF market soared to $271 billion as of September, according to the World Gold Council. Additionally, data showed that despite surges in Bitcoin ETF inflows in November and December, gold ETFs saw outflows for the first time in six months. As a result, the gap between the two is closing rapidly.

Geraci noted that the outcome of his prediction may depend on how Bitcoin and gold prices perform in the coming weeks. He also noted that physical gold ETFs were launched 20 years ago, so the development of a BTC ETF is “shocking.”

BackRock's iShares BTC ETF (IBIT) has attracted more than $4 billion in inflows since Thanksgiving, an achievement that makes it a prime candidate to launch in 2024 The second largest ETF. BlackRock's IBIT attracted another $393 million in inflows on Friday, bringing its total inflows to nearly $36 billion.

BTC possibleShort Squeeze Emerging

Tightening Bitcoin supply could set the stage for a potential price squeeze, according to recent analysis from 10x Research. The report highlights significant Bitcoin outflows from exchanges, driven by growing demand from corporate accumulation funds such as Bitcoin ETFs and MicroStrategy. All eyes will be on next week’s FOMC meeting to determine whether BTC price action can reach a new all-time high.

There has been a net outflow of 124,000 Bitcoins from exchanges over the past 30 days, indicating a decline in liquidity. Top cryptocurrency exchanges such as Coinbase, Binance, Gemini, OKX, and others have seen 7-10% of their BTC reserves withdrawn.

If these trends continue, combined with strong demand, the market could face a severe Bitcoin supply crunch. The launch of Bitcoin ETF options may exacerbate this situation, potentially triggering a gamma squeeze and further exacerbating price pressure

As of press time, Bitcoin prices were up 2 % to US$101,953, with the market value exceeding US$2 trillion. According to data from Coinglass, 24-hour liquidations were $38.6 million, with short liquidations soaring to $26.6 million.