Bitcoin ETFs May Echo Gold’s Boom-Bust Cycle, Analyst Warns

U.S. spot bitcoin exchange-traded funds, approved in January 2024, opened the cryptocurrency to investors through conventional brokerage accounts. A Bloomberg analyst said bitcoin and gold ETFs share a defining feature: the underlying assets generate no cash flow. Their valuations therefore depend heavily on scarcity narratives, fund flows and investor sentiment, making both vulnerable to sharp swings when risk appetite changes.

The analyst pointed to the first U.S. gold ETFs, launched in 2004, as a potential template. Gold delivered a multiyear surge after the products arrived but later suffered a steep drawdown and a prolonged recovery. Bitcoin ETFs may similarly support fresh long-term highs as adoption and inflows expand, but investors should be prepared for painful corrections and potentially years of rebuilding after speculative peaks.