With the price increase in Bitcoin (BTC) and the increasing trend of institutional firms to Bitcoin, Grayscale Bitcoin Trust product may soon surpass the largest commodity ETF.
Bloomberg’s senior commodity strategist Mike McGlone said Grayscale Bitcoin Trust is on its way to surpass its largest gold ETF in the next few months.
Grayscale Bitcoin Trust Pursuit of GLD
McGlone compared the performances of the largest Bitcoin fund and the largest gold fund on Twitter.
Founded in 2004, SPDR Gold Shares (GLD) is the largest gold-tracking exchange traded fund with $ 57 billion AUM. On the other hand, Grayscale’s Bitcoin Trust emerged about eight years ago.
Bloomberg’s chart clearly shows the difference between the two funds, at least until mid-2020. At that time, GLD was rising with its AUM of over $ 80 billion, while GBTC was struggling under $ 5 billion. However, as institutions’ interest in Bitcoin increased, the gap between funds began to close.
In 2021, GBTC AUM exceeded $ 40 billion. GLD’s AUM fell by $ 20 billion. Bitcoin advocates also stated that with these numbers, Bitcoin shrinks the market share of gold.
If current trends regarding gold and Bitcoin remain the same, according to Bloomberg’s prediction, GBTC could catch the GLD in May 2021 or July 2021.
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