Bitcoin's Market Cap to Match Gold's by 2029, Driven by ETFs and Institutional Adoption

Bitcoin is on a trajectory to reach gold’s market capitalization by 2029, driven by structural inflows from exchange-traded funds (ETFs) and increasing institutional adoption. This shift in investor sentiment is particularly notable amidst easing tariff tensions with China. According to André Dragosch, head of European research at Bitwise, Bitcoin could see a significant price increase as more institutions embrace it.

Bitcoin’s market cap is currently around $1.9 trillion, making it the seventh largest asset globally. In contrast, gold’s market cap stands at over $21.7 trillion. The convergence of these two assets’ market capitalizations is a key indicator of Bitcoin’s growing acceptance and potential for future growth. This trend is further supported by the increasing number of ETFs that are investing in Bitcoin, which are expected to drive substantial inflows into the cryptocurrency market.

Analysts predict that Bitcoin could exceed $200,000 by 2025 under baseline conditions, with the potential to reach $500,000 if government support continues to grow. This optimistic outlook is fueled by the increasing trust among institutional investors and the favorable regulatory environment. The growing acceptance of digital assets by traditional financial institutions is a significant factor in this trend, as more firms are exploring investments in cryptocurrencies.

In a notable development, Abu Dhabi-based firm MGX announced a $2 billion investment in Binance, the leading cryptocurrency exchange, using the USD1 stablecoin. This move underscores the growing trend of institutional investment in the digital asset space and marks MGX’s first venture into cryptocurrency. The USD1 stablecoin, introduced by World Liberty Financial, has gained traction since its launch in March 2025 and is linked to Donald Trump’s family.

This strategic investment by MGX not only signifies a significant foray into the cryptocurrency market by a traditional firm but also points towards broader acceptance of digital assets in traditional finance. The nature of this investment could serve as a catalyst for future engagements between established firms and the crypto landscape, although Binance awaits confirming the details regarding the stablecoin used.