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US Bitcoin ETFs will soon catch up with gold ETFs in size if they maintain their current rate of accumulation. Bloomberg ETF analyst Eric Balchunas suggests these funds may eclipse gold ETFs by Christmas.

As of Nov. 23, Bitcoin ETFs in the U.S. reached $107 billion in assets, representing about 86% of the total net assets of gold ETFs, according to data combined by Balchunas and HODL15Capital.

“They trail only gold ETFs by $23 billion, a good shot to surpass by Xmas,” Balchunas said.

Bitcoin ETFs close the gap with Satoshi Nakamoto. These funds currently hold around 98% of Satoshi’s estimated Bitcoin holdings, with a strong chance of overtaking the Bitcoin creator to become the world’s largest Bitcoin holder next week.

This week alone, US discovered Bitcoin ETFs saw net inflows around $3.3 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) capturing around 62% of the total, Farside Investors’ data shows.

IBIT continues to widen the gap with BlackRock’s iShares Gold Trust (IAU) in net assets. On November 22, IBIT owned Bitcoin worth $48.4 while the IAU’s assets were valued at around $34 billion.

Bitcoin’s rise raises concerns about stability compared to gold

On Friday, the world’s largest crypto asset set a new record high of $99,500, approaching six figures. For Bitcoin advocates, the bull market is still in its early stages.

VanEck’s target for Bitcoin this cycle is $180,000. The asset manager reiterated his forecast in a recent report, backed by bullish indicators such as funding rates, relative unrealized profit (RUP) and retail interest.

But State Street, which manages over $4 trillion in assets, thinks investors are getting overly optimistic about Bitcoin’s potential and overlooking the stability and long-term value that gold offers.

George Milling-Stanley, chief gold strategist at State Street Global Advisors, warns that the current Bitcoin rally could create a false sense of security among investors. Unlike gold, which has a long history of being a reliable store of value, Bitcoin’s future is uncertain, according to the analyst.

“Bitcoin, pure and simple, it’s a return play, and I think people have jumped on the return play,” Milling-Stanley told CNBC.

Milling-Stanley emphasizes that Bitcoin promoters, who often compare Bitcoin mining to gold mining, create a false sense of similarity that mimics the allure of gold.

“There is no mining involved. This is a computer operation, pure and simple. But they called it mining because they wanted to appear like gold – maybe take some of the aura off the gold,” he added.

While gold has returned 30% year-to-date, Bitcoin has stolen the show with a staggering 160% increase. Its market capitalization now eclipses that of silver and Saudi Aramco.

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