Spot Bitcoin exchange-traded funds (ETFs) are on a trajectory to potentially eclipse gold ETFs in total assets under management (AUM), according to Bloomberg ETF analyst James Seyffart. He suggests this shift is fueled by Bitcoin’s expanding utility beyond the traditional “digital gold” store-of-value narrative, offering investors a more multifaceted financial tool.
“There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio,” Seyffart explained during an appearance on the Coin Stories podcast. He outlined Bitcoin’s diverse roles: as digital gold, a store of value, a portfolio diversifier, a form of digital capital and property, and a “growth risk asset.” In contrast, he noted that gold primarily serves only one of those functions. “Our view is that Bitcoin ETFs will be larger than gold ETFs,” he stated.
Bitcoin ETFs: More Than Just a Hedge
Seyffart characterized Bitcoin ETFs as a versatile instrument, akin to a “hot sauce” for portfolios. “There are so many people that could use it. They could be viewing it to put in their portfolio because they want to bet on like a growth and liquidity trade,” he said. This flexibility allows it to serve various strategic purposes, from a high-growth satellite holding to a diversifier against traditional market risks.
Bloomberg ETF analyst James Seyffart spoke to Natalie Brunell on the Coin Stories podcast. Source: Coin Stories
The comparison to gold remains a common benchmark due to Bitcoin’s fixed supply and its perceived role as a hedge against currency devaluation. Recent fund flow data, however, highlights a growing divergence in investor appetite. In March, U.S. spot Bitcoin ETFs attracted $1.32 billion in net inflows, while U.S. gold ETFs experienced net outflows of $2.92 billion. A significant $3 billion outflow from the largest gold ETF, GLD, on March 4 marked its biggest single-day withdrawal in over two years.
Diverging Flows, Parallel Price Paths
Data from the Bank for International Settlements (BIS), cited by Cointelegraph in March, reveals a split in the gold market: retail physical gold purchases have tripled over the past six months, while institutional selling from Wall Street has accelerated over the last four months. This institutional outflows from gold ETFs contrasts sharply with the sustained institutional interest in the newly launched spot Bitcoin ETFs.
Despite the capital flow divergence, the two assets have traded in a similar range over the past 30 days. As of publication, Bitcoin priced at $66,918 was down 8.07%, while gold at $4,676 was down 8.25%, according to CoinMarketCap and GoldPrice data, respectively. This recent correlation underscores that while their long-term investment theses may differ, they can be influenced by similar macroeconomic factors in the short term.
Fidelity Digital Assets analyst Chris Kuiper noted in December 2025 that gold and Bitcoin have historically taken turns outperforming. With gold having “shone” in 2025, he suggested it would “not be surprising if Bitcoin takes the lead next,” a perspective that aligns with Seyffart’s long-term AUM forecast.
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