Spot Bitcoin exchange-traded funds (ETFs) have the potential to surpass gold ETFs in assets under management as investor demand expands beyond treating Bitcoin solely as “digital gold,” ETF analyst James Seyffart said on the Coin Stories podcast. Seyffart argued Bitcoin’s appeal is broader, listing roles such as a store of value, portfolio diversifier, digital capital and property, and noting that markets also price it like a growth-oriented, risk asset.
Compared with gold, which Seyffart said typically fills a single defensive role in portfolios, Bitcoin offers multiple use cases that could attract a wider set of investors. He suggested many market participants will use Bitcoin ETFs as a small, strategic allocation—his analogy: a bit of “hot sauce” in a portfolio that enhances returns or expresses a bet on growth and liquidity.
Recent flows show diverging interest. In March, U.S.-listed gold ETFs recorded net outflows of $2.92 billion, while U.S. spot Bitcoin ETFs drew $1.32 billion in net inflows during the same month. The largest U.S. gold-backed fund, GLD, experienced a $3 billion withdrawal on March 4, the biggest single-day outflow in more than two years.
Data cited from the Bank for International Settlements indicate retail gold buying has increased sharply—tripling over the past six months—even as institutional selling on Wall Street picked up pace. Despite the differences in ETF flows, Bitcoin and gold have recently tracked each other closely: at publication Bitcoin traded near $66,918, down roughly 8.1% over 30 days, while gold traded near $4,676, down about 8.3% over the same period.
Fidelity Digital Assets analyst Chris Kuiper observed last December that gold and Bitcoin have historically taken turns outperforming one another; after a strong period for gold, it would not be surprising for Bitcoin to lead in the following period.
This report is based on the cited public remarks and market data and aims to provide accurate, timely information. Readers are encouraged to verify sources independently.