BTC ETF AUM could surpass Gold, expert says, amid enthusiasm for new investment funds

●Gold’s pain “is like the cherry on top for Bitcoin fans,” Balchunas says, amid euphoria following BTC ETF launches.

●Bitcoin price has nicked $53,000, a level last tested on December 3, 2021.

●Almost $40 million shorts have been liquidated in the process alongside nearly $10 million in long positions.

In a landmark decision on January 10, the US Securities & Exchange Commission (SEC) approved multiple spot Bitcoin exchange-traded funds (ETFs) in a single go. Almost seven weeks down the line, the theme continues to drive the cryptocurrency market, giving investors the train to ride on as markets prepare for the BTC halving in 52 days.

Bitcoin ETF AUM to surpass Gold

Eric Balchunas, an ETF specialist with Bloomberg Intelligence, says that there is a decent chance that the assets under management (AUM) for Bitcoin ETFs could surpass those of Gold ETFs in less than two years.

This supposition draws from the current lull in the Gold ETF market. According to Balchunas, declines in the price and interest in Gold ETFs is what has come as markets lean toward BTC ETFs. In his opinion, we now have a battle for assets between the two investment products.

It becomes even sweeter as BTC ETFs have managed to amass over $8 billion, according to Balchunas, adding that “[BTC ETFs now command] 40% as much in assets and could surpass Gold in under 24 months.”

Evaluating how Bitcoin ETFs continue to haul in cash as investors bail on Gold, Balchunas details that as BTC ETFs took in about $5 billion in net new assets since they started trading on January 11, Gold ETFs have only managed $3.6 billion in outflows with part of it going to the BTC ETFs.

Balchunas deems Bitcoin ETF class “the most successful launch in history by many measures,” acknowledging that they have added competition for Gold.  A response by X user @wschweitzer corroborates this conclusion.

Almost $40 million in short positions liquidated as Bitcoin price breaches $53,000

Bitcoin price has breached the $53,000 milestone, a level last tested on December 3, 2021. The multi-year high has caught many traders off guard as analysts anticipate a correction before the next leg up.

BTC/USDT 1-day chart, Source: TradingView.

Data shows that there are many stop losses around $52,000, which is likely to trigger a foray north in Bitcoin price as shorts close their positions.

Nevertheless, with the foray past $53,000, almost $40 million in short positions have been liquidated alongside $9.5 million longs.

BTC liquidations chart, Source: Coinglass.