Nate Geraci, market analyst and president of ETF Store, supported the US-based Spot Bitcoin ETF to overtake the gold ETF in cumulative net flows. This prediction comes amidst incredible performance over the past few days as these Bitcoin ETFs attracted more than $2 billion in weekly net flows.
Analyst says Spot Bitcoin ETF will surpass gold ETF within two years
The Spot Bitcoin ETF shook global financial markets this week, recording $2.13 billion in net inflows, according to SoSoValue data. This large investment influx occurred as Bitcoin surged 9.23% and approached a key resistance zone at the $70,000 price mark.
Amid this market euphoria, Nate Geraci predicted that the Spot Bitcoin ETF will record higher cumulative net flows than the Gold ETF over the next two years. This prediction comes as little surprise considering these Bitcoin ETFs have grown exponentially since their launch on January 11th.
For context, the Spot Bitcoin ETF market has total net inflows of $20.66 billion, while gold ETFs currently boast total net inflows of approximately $55 billion. However, compared to gold ETFs, which have been around for over 20 years, Bitcoin ETFs have only been trading for one year.
Additionally, Bloomberg analyst Eric Balciunas recently highlighted that the total net assets of the Spot Bitcoin ETF exceeded $65 billion, a milestone that took gold ETFs nearly five years to achieve. This figure is more than 25% of the total assets under management in the global gold ETF market.
Additionally, Geraci's theory is further strengthened by the fact that there are only a few 11 spot Bitcoin ETFs currently trading, compared to around 5,000 gold ETFs in global financial markets. Therefore, these Bitcoin ETFs may indeed be poised to overtake gold ETFs, especially considering the upcoming cryptocurrency market bull run and the current level of digital asset adoption.
Bitcoin price correction amid market surge
In other news, crypto analyst Ali Martinez shared that Bitcoin may soon experience a “short-term decline” following recent price increases. As mentioned earlier, the cryptocurrency market leader rose more than 8% from around $63,000 to almost above $69,000.
While the BTC market is currently bullish, Martinez said TD Sequential is currently showing a sell signal on the 4-hour chart, reinforced by a bearish divergence in the Relative Strength Index (RSI). If Bitcoin price declines, investors will focus on the next support level at $60,000. Even with strong selling pressure, the premier cryptocurrency could trade as low as $55,000.
At the time of writing, Bitcoin continues to trade at $68,428, up 0.98% from the previous day.
