Bitcoin ETFs Surpass Gold ETFs in Assets Under Management

Bitcoin ETFs are poised to surpass gold ETFs in total assets under management, a historic milestone in global markets. Over the past 12 months, Bitcoin ETFs have doubled to $150 billion, while gold ETFs have climbed 40% to a record of $180 billion. If current trends continue, Bitcoin ETFs could surpass gold ETFs as early as next year, marking a symbolic flip that underscores the rise of crypto from speculative asset to mainstream portfolio allocation.

Bitcoin ETFs are poised to surpass gold ETFs in total assets under management, a historic milestone in global markets. Over the past 12 months, Bitcoin ETFs have doubled to $150 billion, while gold ETFs have climbed 40% to a record of $180 billion [2]. If current trends continue, Bitcoin ETFs could surpass gold ETFs as early as next year, marking a symbolic flip that underscores the rise of crypto from speculative asset to mainstream portfolio allocation.

This shift highlights the increasing institutional adoption of Bitcoin. Bitcoin ETFs are no longer just for retail investors but have become a gateway for institutional investors to access the cryptocurrency market. The iShares Bitcoin Trust (IBIT), for instance, has captured 96.8% of U.S. Bitcoin ETF inflows in Q2 2025, amassing $86.2 billion in assets under management [1].

The growth of Bitcoin ETFs is fueled by several factors. The U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs has normalized institutional access to the asset, reducing volatility by 75% compared to 2023 levels [3]. This regulatory clarity has made Bitcoin a viable hedge against monetary easing and inflation, with an inverse correlation to the Federal Reserve’s policy rate and a direct correlation to U.S. equities [4].

Gold, however, remains a stalwart in times of macroeconomic uncertainty. Central banks purchased 710 tonnes of gold in 2025, and gold ETFs attracted $21.1 billion in inflows, projecting prices to reach $4,000/oz by 2026 [5]. The SPDR Gold Shares (GLD) fund, with $104.45 billion in assets under management, remains a cornerstone of institutional portfolios, leveraging gold’s millennia-old role as a store of value [6].

Investor sentiment reveals a stark generational divide. A survey of 730 Gen Z and Millennial investors found that 73% favored Bitcoin over gold as a long-term investment, citing its potential for exponential growth and blockchain transparency [7]. Meanwhile, 59% of institutional investors allocated at least 10% of their portfolios to Bitcoin, driven by the launch of regulated ETFs that simplified custody and compliance [8].

While Bitcoin ETFs are rapidly gaining ground, gold ETFs continue to dominate in times of geopolitical crises. During Q2 2025, gold ETFs recorded $3.2 billion in inflows alone, outperforming Bitcoin as a stabilizing force [9]. Institutional analysts from Goldman Sachs and JP Morgan note that gold’s tangibility and industrial demand ensure its relevance, even as Bitcoin gains traction [10].

For long-term investors, the choice between Bitcoin and gold hinges on risk tolerance. Bitcoin’s scarcity and projected price targets (e.g., $200,000 by 2026-2027) make it a compelling hedge against currency devaluation, particularly in high-inflation environments [11]. However, gold’s proven track record as a safe-haven asset ensures its place in portfolios, with central banks and ETFs reinforcing its position [12].

Diversified portfolios now allocate 5-10% to Bitcoin (via ETFs) and 10-15% to gold, leveraging both assets’ unique strengths against macroeconomic risks [13]. Retail investors, too, have shifted strategies, with 68% planning to expand or adjust their allocations in 2025 [14].

In conclusion, the 2025 asset allocation landscape is defined by a dual narrative: Bitcoin’s rapid institutional adoption and gold’s enduring appeal. While Bitcoin ETFs have closed the assets under management gap with gold, the latter’s historical reliability and industrial demand ensure its place in portfolios. Investors must weigh Bitcoin’s growth potential against gold’s stability, tailoring allocations to macroeconomic expectations and risk profiles. As both assets navigate a high-inflation, uncertain world, their coexistence—rather than competition—may prove optimal for long-term resilience.

References:
[1] https://www.coindesk.com/markets/2025/08/04/bitcoin-and-gold-etfs-combined-break-usd500b-barrier
[2] https://bitcoinist.com/bitcoin-etfs-to-surpass-gold-etfs/
[3] https://www.ainvest.com/news/jane-street-3-4-billion-bitcoin-etf-bet-catalyst-institutional-adoption-2508/
[4] https://www.bitget.com/news/detail/12560604933881
[5] https://www.gold.org/goldhub/research/gold-etfs-holdings-and-flows/2025/06
[6] https://www.ssga.com/us/en/intermediary/etfs/spdr-gold-shares-gld
[7] https://www.devere-group.com/young-investors-back-bitcoin-over-gold-poll/
[8] https://pinnacledigest.com/blog/institutional-bitcoin-investment-2025-sentiment-trends-market-impact
[9] https://www.gold.org/goldhub/research/gold-etfs-holdings-and-flows/2025/08
[10] https://www.ainvest.com/news/bitcoin-gold-long-term-store-high-inflation-world-2508/
[11] https://www.ainvest.com/news/bitcoin-gold-long-term-store-high-inflation-world-2508/
[12] https://www.ainvest.com/news/bitcoin-gold-superior-inflation-hedge-2025-2508/
[13] https://www.ainvest.com/news/bitcoin-gold-long-term-store-high-inflation-world-2508/
[14] https://www.sacbee.com/news/business/article309382750.html