Bloomberg’s ETF Analyst Says Bitcoin Funds Will Triple Gold Hours After Admitting They Burned Cash
Bloomberg's Eric Balchunas stated Bitcoin ETFs will eventually 'triple gold in assets', citing demographic trends and institutional adoption. Earlier, he acknowledged Bitcoin ETFs have 'burned cash' by a common definition. Over the past year, iShares Bitcoin Trust (IBIT) fell 34.44%, while SPDR Gold Trust (GLD) rose 17.67%. Balchunas maintains his long-term forecast despite recent underperformance.
How this was made
The 30-second read
Why it matters
The mixed signals create uncertainty for investors in crypto‑ETF products, while reinforcing gold's defensive narrative.
Market read
The article juxtaposes Bitcoin and gold ETF performance, offering a speculative outlook that may influence short‑term fund flow decisions.
What to watch
Regulatory uncertainty and volatility in crypto markets could dampen Bitcoin‑ETF inflows.
Background
Analyst Eric Balchunas posted contradictory views on Bitcoin ETFs, first noting cash burn then predicting they will eventually triple gold's assets.
Ticker impact
The article reports that iShares Bitcoin Trust (IBIT) is down 34.44% over the past year and has a 19.47% rally over the past month.
Potential short‑term weakness unless inflows accelerate.
Analyst's bullish quote is not backed by new fund inflows; recent performance remains negative.
The piece notes SPDR Gold Trust (GLD) is up 17.67% over the past year and 219.51% over ten years, with a 2% intraday gain.
Likely to hold gains; may attract flow if Bitcoin ETFs remain weak.
Gold's outperformance relative to Bitcoin ETFs is highlighted, supporting continued demand.
Market effects
Highlights competitive dynamics between crypto‑ETF and gold‑ETF sectors.
U.S. investors may favor gold ETFs amid Bitcoin‑ETF underperformance.
Signals potential shift in asset allocation trends for younger investors worldwide.
Counterpoint
Gold's long‑standing store of value may keep it ahead of Bitcoin ETFs despite bullish forecasts.
Key entities
- AnalystEric Balchunas
Bloomberg senior ETF analyst providing the quoted opinions.
- ETFiShares Bitcoin Trust
Bitcoin ETF referenced with ticker IBIT.
- ETFSPDR Gold Trust
Gold ETF referenced with ticker GLD.
