Bitcoin ETFs Surpass $120B, Set for Potential Gold-ETF-Doubling Record

Bitcoin exchange-traded funds (ETFs) have reached $120 billion in assets within two years, according to Bloomberg Intelligence senior ETF analyst Eric Balchunas. This pace outran gold ETFs, which took over a decade to match.

Institutions control $100 trillion in assets and few have added bitcoin exposure yet, despite its growing popularity. Spot ETFs offer direct bitcoin exposure without the leverage risk of treasury company stocks.

Net inflows into these funds grew from $38 billion in their first year to about $40 billion by the time of Balchunas' interview with CoinShares. The total assets surpassed nearly $120 billion, pushing gold ETFs at that point.

Bitcoin's fixed supply of 21 million coins means demand would meet a market that cannot expand to match it, even if institutions allocate just 1% of their assets to bitcoin.