Market analyst and head of ETF Shop Nate Geraci backed US Bitcoin ETFs to surpass gold ETFs in terms of cumulative net inflows. This prediction comes amidst the amazing performance of Bitcoin ETFs in the past few days as they attracted more than $2 billion in weekly net inflows.
Bitcoin ETFs Will Overtake Gold ETFs Within Two Years, Analyst Says
Spot Bitcoin ETFs rocked global financial markets this week recording net inflows of $2.13 billion according to Data from SoSoValue. This massive influx of investments occurred as Bitcoin rose 9.23%, approaching the critical resistance area at $70,000.
Amidst this market euphoria, Nate Geraci And he prophesied Spot Bitcoin ETFs will record higher cumulative net inflows than gold ETFs in the next two years. These predictions are largely unsurprising given the explosive growth of Bitcoin ETFs since their launch on January 11.
For context, gold ETFs currently boast combined net inflows of approximately $55 billion compared to $20.66 billion total net inflows in the spot Bitcoin ETF market. However, Bitcoin ETFs have been trading for barely a year compared to gold ETFs which have been around for over 20 years.
Moreover, said Bloomberg analyst Eric Balchunas Recently highlighted Bitcoin ETFs have amassed more than $65 billion in total net assets, a major milestone that took gold ETFs nearly five years to achieve. This number also represents more than 25% of the total assets under management in Global gold market for ETFs.
Additionally, Geraci’s theory is further bolstered by the handful of 11 Bitcoin ETFs currently in circulation, compared to the roughly 5,000 gold ETFs on the global financial market. Therefore, these Bitcoin ETFs may actually be poised to outpace their gold counterparts, especially given the upcoming rise in the cryptocurrency market and the digital asset’s current adoption levels.
Bitcoin is set for a price correction amid the market rally
In other news, cryptocurrency analyst Ali Martinez partner That Bitcoin may soon see a “short-term decline” after the recent price rise. As previously mentioned, the cryptocurrency market leader posted gains of more than 8%, going from around $63,000 to nearly $69,000.
While the BTC market is currently bullish, Martinez says the TD sequence is currently indicating a sell signal on the 4-hour chart which is being reinforced by a bearish divergence on the Relative Strength Index (RSI). If Bitcoin price declines, investors will shift their attention to the $60,000 price area where the next support level is located. Although strong selling pressure could cause the leading cryptocurrency to trade as low as $55,000.
At the time of writing, Bitcoin continues to trade at $68,428 with a 0.98% gain in the last day.
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