Bitcoin ETFs May Follow Gold's Volatile Pattern, Analyst Warns

Bloomberg analyst Eric Balchunas predicts that U.S. spot Bitcoin ETFs will follow gold's 'triumph and pain' pattern, which saw gold ETFs briefly become the world's largest ETF in 2011 but then spend eight years trying to reclaim the top spot.

Gold ETFs did eventually reclaim their position again in 2024, and Balchunas believes that a similar two steps forward, one step back pattern could happen for Bitcoin ETFs.

The analyst notes that gold ETF investors have seen more outflows than Bitcoin ETF holders, with $11 billion in outflows over the past three months compared to $6 billion in Bitcoin ETF outflows.

However, rising oil prices and renewed tensions in West Asia could still derail the cryptocurrency's upside potential, according to Balchunas.