Analyst Predicts Bitcoin ETFs Will Surpass Gold ETFs

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.

WisdomTree’s digital asset research argues that Bitcoin is evolving from a highly volatile risk asset into a monetary asset capable of competing with gold. Both have scarce supplies, are politically neutral and can serve as stores of value, making their relative valuations increasingly relevant to macro asset allocation.

As of July 20, 2026, WisdomTree’s analysis indicated that Bitcoin was about 26% undervalued relative to gold, suggesting its status as a monetary asset was not yet fully reflected in its price. The report provided no specific transaction value or research publication date, focusing instead on the valuation gap between the two assets.

The “debasement trade” refers to investors shifting into assets such as gold or Bitcoin to hedge against declining fiat-currency purchasing power, inflation and geopolitical risks. Following an escalation in the Iran conflict, JPMorgan observed that safe-haven allocations were rotating toward Bitcoin. Spot ETFs and CME futures have lowered barriers to institutional participation, making the shift an important sign of digital assets’ move into the mainstream.

On May 7, 2026, a JPMorgan team led by Managing Director Nikolaos Panigirtzoglou said Bitcoin ETFs had entered a third consecutive month of net inflows in May. They attracted $1.32 billion in March, $2.44 billion in April and another $1.38 billion in early May. Gold ETFs, by comparison, recorded outflows of more than $3 billion in March. If the current pace is maintained, Strategy’s Bitcoin purchases could reach about $30 billion for the full year.