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
The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hikeA Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
Author  Irene Q.
Oct 22, Thu
A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 26, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
Author  Mitrade
Yesterday 01: 52
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
Yesterday 05: 32
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Gold breaks $4,000 as oil becomes the inflation problem — $3,943 is the line that mattersSpot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
Author  Irene Q.
Yesterday 06: 41
Spot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
placeholder
Bitcoin Price Forecast: Drops Below $80,000 in Fifth Straight Loss, May Test $75,000 as FOMC Meeting Approaches Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
Author  TradingKey
Yesterday 10: 10
Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
goTop
quote