Key Points
- Gold ETFs have seen outflows as Bitcoin ETFs attract more interest, according to VanEck’s CEO.
- Bitcoin could be on the verge of a parabolic run following a key update on the US money supply.
VanEck’s CEO, Jan Van Eck, has reported that Gold ETFs are experiencing outflows as Bitcoin ETFs become increasingly attractive to investors. This observation was made during Paris Blockchain Week 2024, where Van Eck noted that despite Gold ETFs reaching record highs and rallying by 14% in 2024, they are still experiencing outflows.
Van Eck also mentioned that a Google search analysis indicated that Bitcoin is dominating investor interest over gold.
Bitcoin ETF Demand and Performance
US Bitcoin ETFs added approximately 30K BTC in May, although demand for these ETFs seems to have plateaued. Specifically, in May, US spot BTC ETFs reported net positive flows, adding 29.5K BTC, even when considering the selling of GBTC.
BlackRock’s IBIT led the inflows with $169 million, followed by Fidelity’s FBTC’s $5.9 million. However, Grayscale’s GBTC recorded $124.3 million in outflows, which offset the above inflows.
Despite this, Bitcoin could be on the verge of a significant run. The cryptocurrency has reached a critical milestone, similar to what was observed before the 2017 parabolic run – it has broken above the US money supply.
Crypto analyst TechDev has suggested that Bitcoin’s growth is now driven by its own demand rather than an increased money supply. This could lead to Bitcoin outpacing expectations based on 2021 data.
Meanwhile, another analyst, Peter Brandt, has predicted that this market cycle could see Bitcoin reach between $130K-$150K per BTC by August 2025. However, Bitcoin must break above its current price range to confirm this uptrend momentum.
