Blockstream CEO Adam Back, a prominent figure in the cryptocurrency space, recently suggested in a post that Bitcoin could potentially exceed $700,000 if it manages to match the market capitalization of gold, currently around $13.5 trillion. Back’s remark was prompted by observations that Bitcoin is not only attracting substantial investment but also causing a decline in gold investments. If Bitcoin continues to divert funds from gold, leading both assets to converge in value, it could significantly boost Bitcoin’s price. This prediction coincides with growing interest in Bitcoin ETFs, which are outperforming gold ETFs in terms of investment flows.
Bitcoin outshining gold
The discussion about Bitcoin potentially surpassing gold has been driven by the impressive performance of Bitcoin ETFs. Recent data indicates that the combined net inflows for the top ten Bitcoin ETFs, including prominent ones like GBTC, have doubled in the last three days, exceeding $3 billion.
The rapid growth of Bitcoin ETFs stands in stark contrast to the nearly two years it took for gold ETFs to reach a comparable milestone. Eric Balchunas of Bloomberg recently highlighted this trend, observing a significant shift in investment preferences from traditional precious metals to digital currencies. Bitcoin ETFs such as IBIT and FBTC are garnering increased interest from investors and rank prominently among the top ETFs for year-to-date inflows, indicating expanding support for cryptocurrency as an investment option.
Will Bitcoin Become the Biggest Commodity ETF?
Back has previously forecasted that Bitcoin ETFs will soon surpass gold ETFs, emerging as the premier commodity ETF. With Bitcoin ETFs already exceeding $27.5 billion, surpassing silver ETFs, and nearing the $90 billion held by gold ETFs, the digital currency is poised to reshape the investment landscape. The introduction of Bitcoin ETFs marked a substantial shift, akin to the debut of gold and silver ETFs in the early 2000s, offering simplified access to commodities without the necessity for physical handling.
