Bitcoin Will Surpass Gold as a Store of Value, Expert Says
The head of research at ETC Group, Andre Dragos, has acknowledged that a large influx of capital into exchange-traded Bitcoin products in the long term could threaten the status of gold as the primary store of value.
Dragos noted the growing divergence between flows within crypto funds and gold investments. This, he believes, could be a sign that Bitcoin is taking over as the leading store of value in the world.
Dragos also pointed out that the majority of new investments in cryptocurrency are coming from US-listed exchange-traded funds, and these flows are becoming increasingly important to Bitcoin’s overall performance.
According to ETC Group’s data, net inflows into cryptocurrency-based ETPs have significantly increased since the beginning of the year, in part due to a decrease in capital withdrawals from the Grayscale Bitcoin Trust.
This has also resulted in a pullback of funds from gold investments. BitMEX Research also reported a sharp increase in the total value of spot Bitcoin exchange-traded funds in the US over the past week, with a $2.3 billion inflow. The majority of this was contributed by BlackRock’s iShares Bitcoin ETF.
