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

Source Fxstreet
  • 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.

Also Read: Bitcoin price's next move should manifest once MicroStrategy grows BTC portfolio to 193K tokens

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

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

 At the time of writing, Bitcoin price is trading at $53,492 as of 19:00 GMT. 

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
Gold rebounds above $4,350 as US Dollar, Treasury yields slipGold price (XAU/USD) rebounds from a nearly one-month low to around $4,385 during the early Asian session on Thursday. The precious metal edges higher as the ‌US Dollar (USD) and Treasury yields retreat from recent highs.
Author  FXStreet
Sep 03, Thu
Gold price (XAU/USD) rebounds from a nearly one-month low to around $4,385 during the early Asian session on Thursday. The precious metal edges higher as the ‌US Dollar (USD) and Treasury yields retreat from recent highs.
placeholder
Gold rebounds past $4,400 as rate-hike odds cool ahead of NFPGold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
Author  Irene Q.
Sep 03, Thu
Gold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
placeholder
Gold rebounds above $4,450 as Waller tempers Fed rate hike bets ahead US jobs dataGold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday. 
Author  FXStreet
Yesterday 01: 32
Gold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday. 
placeholder
Yen hits one-month high on BOJ September-hike bets; AUD/JPY cracks support as carry unwindsUSD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
Author  Suzie
Yesterday 06: 52
USD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
goTop
quote