Bitcoin ETFs Overtake SPDR Gold Shares ETF (NYSEARCA:GLD) in Assets

There are those who consider Bitcoin (BTC-USD) and other cryptocurrencies as little more than a kind of digital gold. After all, they note, there are elements of scarcity involved, and a lack of government connection to either aside from a few modest points. But cryptocurrencies are certainly gaining in popularity over what was called the “barbarous metal” once, as demonstrated by recent changes in how many assets are under management at the SPDR Gold Shares ETF (NYSEARCA:GLD) and how many are under management with spot Bitcoin ETFs.

There have been 11 such Bitcoin ETFs created recently, which has really only been an option for investors since January 11. But they caught on—man, did they ever—and now, the 11 of them account for a combined total of over $60 billion in assets under management. That by itself might not mean so much—it is split among 11 funds, after all—but the issue is that the SPDR Gold Shares ETF only has $56.9 billion under management. Effectively, this means that there are more assets tied up in Bitcoin than in gold, at least in one sense.

A Two-Fisted Approach

Here’s where things get a bit interesting, though. Even as investors are moving into cryptocurrency, they’re not necessarily moving out of gold. Word from JPMorgan notes that retail and institutional investors alike are buying in on Bitcoin—the numbers bear that out nicely—but they’re buying both in tandem. JPMorgan found there was a build-up in both gold and Bitcoin futures since February. Indeed, hedge funds and other “speculative institutional investors” have been buying both almost simultaneously, perhaps using one as a hedge against the other.

Is GLD a Good Buy Right Now?

Turning to Wall Street, a look at the last five days in trading for GLD reveals a slight drop of just 1.01% total. The drop wasn’t all at once, either, as share prices of GLD plateaued multiple times before staging slight drops and slight recoveries. A look at the graph might suggest a wicked sawtooth, until you look at the scale and realize all that volatility represents essentially fractions of a cent per share.

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