Market analyst and ETF shop President Nate Geraci has endorsed US-based bitcoin spot ETFs outperforming gold ETFs in terms of cumulative net flows. This projection comes amid an astonishing performance by these bitcoin ETFs in recent days, where they have attracted over $2 billion in weekly net flows.
bitcoin Spot ETFs Will Outperform Gold ETFs in 2 Years, Analyst Says
bitcoin spot ETFs shook global financial markets this week, recording net inflows of $2.13 billion according to btc-spot” target=”_blank”>SoSoValue data. This massive influx of investments came as bitcoin surged 9.23%, approaching a critical price resistance zone of $70,000.
In the midst of this market euphoria, Nate Geraci x.com/NateGeraci/status/1847291691851559407″ target=”_blank”>has predicted bitcoin spot ETFs will post higher cumulative total net flows than gold ETFs over the next two years. This forecast is largely unsurprising considering the exponential growth of these bitcoin ETFs since their launch on January 11.
For context, gold ETFs currently have combined net inflows of around $55 billion compared to aggregate net inflows of $20.66 billion into 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.
<img class="size-large wp-image-648812" src="https://technicalterrence.com/wp-content/uploads/2024/10/Analyst-Backs-Spot-Bitcoin-ETFs-Overtaking-Gold-ETFs-in-Cumulative.jpeg" alt="bitcoin Spot ETF” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/IMG_5345.jpeg?w=984 984w, https://www.newsbtc.com/wp-content/uploads/2024/10/IMG_5345.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/10/IMG_5345.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/10/IMG_5345.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/10/IMG_5345.jpeg?w=750 750w” />
Additionally, Bloomberg analyst Eric Balchunasx.com/EricBalchunas/status/1846885254356770924″ target=”_blank”> recently highlighted bitcoin spot ETFs have amassed more than $65 billion in total net assets, a milestone that took gold ETFs nearly five years to reach. This figure also represents more than 25% of the total assets managed in the Global Gold ETF Market.
Furthermore, Geraci's theory is further reinforced by the few 11 spot bitcoin ETFs currently trading compared to the nearly 5,000 gold ETFs in the global financial market. Therefore, these bitcoin ETFs may be poised to outperform their gold counterparts, especially considering the upcoming cryptocurrency market bull run and current levels of digital asset adoption.
bitcoin Braces for Price Correction Amid Market Rally
In other news, cryptanalyst Ali Martinez x.com/ali_charts/status/1847389588060590504″ target=”_blank”>has shared that bitcoin could soon experience a “short-term decline” following its recent price rally. As noted above, the cryptocurrency market leader gained over 8%, rising from around $63,000 to almost surpassing $69,000.
While the btc market is currently bullish, Martinez states that the sequential TD is currently indicating a sell signal on the 4-hour chart which is reinforced by a bearish divergence on the Relative Strength Index (RSI). If the price of bitcoin were to fall, investors would focus their attention on the $60,000 price zone where its next support level lies. Although strong selling pressure could see the top cryptocurrency trading as low as $55,000.
At the time of writing, bitcoin continues to trade at $68,428 with a gain of 0.98% in the last day.
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