Younger Investors Could Help Bitcoin ETFs Overtake Gold: Analyst

The analyst says Bitcoin's biggest hurdle with investors is volatility, but he expects that concern to fade as the market matures.

Bloomberg ETF analyst Eric Balchunas said this week that Bitcoin ETFs could eventually reach three times the assets of gold ETFs, pointing to younger investors, falling volatility and stronger sales activity around BTC funds.

His view rests on a long-term shift in who owns Bitcoin and how institutions use it, rather than a claim that the cryptocurrency has already displaced gold as a store of value.

Balchunas Sees Bitcoin Closing the Gap With Gold

In a recent interview with Bitcoin Magazine, Balchunas said younger investors are more likely to grow up treating Bitcoin as a store of value, giving Bitcoin ETFs a potential advantage as those investors accumulate more capital.

“I do believe that Bitcoin ETFs will triple gold in assets,” he said.

Right now, gold is less volatile than BTC, and according to the analyst, volatility is the main concern investors report when considering the flagship cryptocurrency.

But if its volatility and correlation with other assets continue moving closer to gold, he expects larger institutions to become more comfortable using it as a store of value, a safe haven asset or an alternative holding.