Spot Bitcoin ETFs Listed in the U.S. Nearing Gold ETFs in Market Size.

U.S. Spot Bitcoin ETFs Are Close to Surpassing Gold ETFs in Assets

The year 2024 has witnessed a remarkable shift in digital assets, with bitcoin (BTC) making significant strides, propelled by growing institutional adoption. This shift has occurred through two major trends: first, the adoption of bitcoin as a treasury asset by public companies, and second, the impressive performance of U.S.-listed spot bitcoin exchange-traded funds (ETFs), which have now amassed more than 1 million BTC.

According to a report from K33 Research, U.S.-listed bitcoin ETFs have now surpassed gold ETFs in assets under management (AUM), including leveraged products such as futures-based ETFs. As of December 17, bitcoin ETFs reached an AUM of $129.25 billion, edging out gold ETFs, which stood at $128.88 billion, according to K33 Research analyst Vetle Lunde.

However, when looking only at spot-based products, gold still holds a slight advantage. Bloomberg’s Senior ETF Analyst Eric Balchunas reports that U.S. bitcoin spot ETFs have an AUM of $120 billion, compared to $125 billion for gold ETFs.

CME’s Strong Institutional Activity

The CME exchange, a hub for institutional investors, has seen strong activity, with futures open interest reaching new highs, now standing at 212,635 BTC in open interest contracts. The report also notes that the basis trade premium has been increasing, rising to 16.4%—the highest since November 2023. This signals that CME traders are anticipating continued momentum as the year draws to a close.

The report also indicates that January contracts are trading at significant premiums over December contracts, with the contango widening to 1.5%, marking the highest next-month premium since November. The December contract on CME remains the most valuable, with open interest equivalent to 113,480 BTC. The upcoming December roll is expected to be substantial, with several banking holidays likely contributing to a further widening of the January premium.

In the last month, U.S. spot-listed bitcoin ETFs have seen consistent daily net inflows, totaling $6.5 billion since November 27, according to Farside data. With the basis trade premium widening and open interest increasing on the CME, a large portion of these net inflows is tied to the cash and carry trade.

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