US-listed Bitcoin exchange-traded funds have rapidly amassed tens of billions in assets, reaching half of gold ETFs in record time.

Since launching in January 2024, Bitcoin ETFs have attracted significant inflows, totaling $23.89 billion and $70 billion in total net assets, per year. data by SoSoValue.

By comparison, the total net assets of US-listed gold ETFs amount to $137.3 billion, according to the latest report. figures of the World Gold Council.

That means that in just 10 months, spot Bitcoin ETFs have amassed more than 50% of the assets of gold ETFs, which have been around for two decades, Nate Geraci, president of The ETF Store, tweeted Thursday.

According to some, the rapid adoption of Bitcoin ETFs reflects the acceleration of widespread interest in digital assets, with recent daily inflows ranging from $192 million to $893 million.

“There is no doubt that BTC ETFs have been well received, breaking all entry records as they go,” said Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital. Decipher.

By comparison, gold ETFs, which debuted in 2004, have long represented a stable hedge against market volatility and inflation.

“It’s difficult to compare absolute flows, since 20 years between launches means a lot of inflation,” McMillin added.

The assets are often compared for their role as “safe havens,” with gold prized for its historical stability and Bitcoin increasingly seen as a digital counterpart due to its finite supply and independence from traditional financial systems.

Jurrien Timmer, head of Global Macro at Fidelity Investments, often characterizes Bitcoin as “exponential gold,” highlighting its rapid adoption curve and inherent scarcity.

Their perspective suggests that Bitcoin’s value proposition extends beyond that of traditional “digital gold,” instead emphasizing its potential as a store of value driven by network growth and limited supply.

Whatever the case, Bitcoin has become the best-performing asset of 2024, rising 65% so far this year to $69,533. Gold has also demonstrated a strong performance, with prices rising 16% to $2,746.09 an ounce.

Even though the world’s largest asset fell more than 4% on Thursday, McMillin still believes Bitcoin will finish the year strong.

“We have seen some sell-offs, which could be larger funds reevaluating their portfolios to make some gains, or very likely it could be a bit of volatility as we get closer to the US elections,” he said.

“I wouldn’t expect us to go much lower here, not without a serious catalyst,” McMillin added.