Bitcoin and Bitcoin Spot ETFs' impact on Gold ETFs

[OcTradism]

Grayscale won against SEC. and paved a foundation for BlackRock to join the fight, submit Bitcoin Spot ETF application and finally we had Bitcoin Spot ETF approvals from SEC. in January 2024.

About 6 months later, we had another big surprise with this announcement from BlackRock.

They will close their Gold ETF soon as announced in BlackRock's  Product updates.


Bitcoin and gold markets are different ones and will exist together but more investors will switch their capital from gold to Bitcoin, it will be a new trend after Bitcoin Spot ETF approvals early this year.

[kotajikikox]

Bitcoin and gold markets are different ones and will exist together but more investors will switch their capital from gold to Bitcoin, it will be a new trend after Bitcoin Spot ETF approvals early this year.

Not only ETFs but just bitcoin and gold, if we compare both of them most investors tend to prefer bitcoin over gold nowadays. Gold has been around for a long time and has earned its reputation and place to the top but times are changing and bitcoin might be challenging gold the way no other asset has done so.

These companies are looking for profits so if they see that more people are interested in bitcoin, then they will prioritize bitcoin over anything else.

[GreatArkansas]

Bitcoin and gold markets are different ones and will exist together but more investors will switch their capital from gold to Bitcoin, it will be a new trend after Bitcoin Spot ETF approvals early this year.

Not only ETFs but just bitcoin and gold, if we compare both of them most investors tend to prefer bitcoin over gold nowadays. Gold has been around for a long time and has earned its reputation and place to the top but times are changing and bitcoin might be challenging gold the way no other asset has done so.

These companies are looking for profits so if they see that more people are interested in bitcoin, then they will prioritize bitcoin over anything else.

They must have a good reason why they will close the GOLD ETF and yep you could be right that the reason could be the volume, where when we started to have Bitcoin ETF, the volume of gold decreased or shifted to Bitcoin ETF.
But we need to know what is their reason, could be difficult to manage anymore as they already have Bitcoin ETF?

[BALIK]

Bitcoin and gold markets are different ones and will exist together but more investors will switch their capital from gold to Bitcoin, it will be a new trend after Bitcoin Spot ETF approvals early this year.

Not only ETFs but just bitcoin and gold, if we compare both of them most investors tend to prefer bitcoin over gold nowadays. Gold has been around for a long time and has earned its reputation and place to the top but times are changing and bitcoin might be challenging gold the way no other asset has done so.

These companies are looking for profits so if they see that more people are interested in bitcoin, then they will prioritize bitcoin over anything else.

Gold is still the top choice, but people tend to use gold as a means of storing assets and a safe haven rather than considering it as an investment because of its stability. So, it's no surprise that bitcoin is becoming more and more popular and people are turning to investing in bitcoin instead of gold.

I also saw this news yesterday but I don't think this is due to the impact of bitcoin. Gold has now become so popular and has been recognized by the world for thousands of years, so it will not even need ETFs and will always be the choice for those who like safety and asset diversification. Blackrock close the gold ETFs probably because it was no longer as profitable as they expected, not because it became useless.

[Aanuoluwatofunmi]

If others have been considering gold ETF before the onset of bitcoin ETF, then its time now to identify the difference and how everyone can have the freedom of going for what they want, as long as bitcoin keep existing, it will always serves an alternative to every other aspect of the financial economy for such to be relevant and desiring for profitability, it should not be a surprise at all if what they want now is bitcoin ETF and not gold ETF any longer, just as we already have a shift from fiat to bitcoin.

[avikz]

Gold EPF has become very common in the market. Also people can buy digital gold and store them digitally. So I believe blackrock is willing to come out of this competition all together. When it comes to digital gold and ETF, the main goal is to make profit from the prize movements. So when people can have multiple options for the same type of product, the competition become very steep.

I believe that is the case why blackrock wants to close their gold ETF. I don't honestly see any other reason. Closing out common products will help them to focus on new types of assets and provide better service to their customers.

[Hamza2424]

I dont know what kind of investors phycology and trend line is now but I love gold, I will buy some for my future wife, haha because when I am rich in order to establish something so called show off I cant just reveal my Bitcoin address, I need some kind of jewelry and that's why I need old even though I cant use it as my own preference due to some restriction still my wife would be able to.

Haha I know that's something silly in my post still gold is gold and Bitcoin is Bitcoin, I can't expect people to completely switch from gold to Bitcoin which is not even practical in terms of local narrative as well. Because the digital era just started and we cant be certain that its life span won't last long I know now we are slipping from the topic but that reality eventually the remaining ones will be us, not our gadgets. So you can say that if we use to say future potential there is a future's future potential in gold. I will make sure to not put all my eggs in one basket.

I think we need to discuss this topic on a particular narrative in another thread.

[itorai]

Gold EPF has become very common in the market. Also people can buy digital gold and store them digitally. So I believe blackrock is willing to come out of this competition all together. When it comes to digital gold and ETF, the main goal is to make profit from the prize movements. So when people can have multiple options for the same type of product, the competition become very steep.

I believe that is the case why blackrock wants to close their gold ETF. I don't honestly see any other reason. Closing out common products will help them to focus on new types of assets and provide better service to their customers.

Well, blackrock decision to close its gold ETF makes sense with the increasing competition in the gold investment market, maybe this will show their adaptability to market changes and focus on innovation to meet the needs of their customers someday, Looking at the flow, it's probably a smart move to ensure long-term growth and success. And that's their job to attract potential customers.

[OcTradism]

They must have a good reason why they will close the GOLD ETF and yep you could be right that the reason could be the volume, where when we started to have Bitcoin ETF, the volume of gold decreased or shifted to Bitcoin ETF.
But we need to know what is their reason, could be difficult to manage anymore as they already have Bitcoin ETF?

They have reasons to reconstruct their products and fund managements to reduce cost of operations and maximize benefit for their business. It is story about different ETFs managed by BlackRock but months ago, before and after Bitcoin Spot ETF approvals by SEC people already discussed about how many Bitcoin Spot ETFs in the USA will exist and continue after some time like one or two years.

I read some discussions and news that some predictions lead to conclusion that there will be less than 6 Bitcoin Spot ETFs in the USA after one year or two years. Weak Bitcoin Spot ETFs will have to self close their ETFs and customers will move funds to bigger Bitcoin Spot ETFs.

[legendbtc]

I dont know what kind of investors phycology and trend line is now but I love gold, I will buy some for my future wife, haha because when I am rich in order to establish something so called show off I cant just reveal my Bitcoin address, I need some kind of jewelry and that's why I need old even though I cant use it as my own preference due to some restriction still my wife would be able to.

Haha I know that's something silly in my post still gold is gold and Bitcoin is Bitcoin, I can't expect people to completely switch from gold to Bitcoin which is not even practical in terms of local narrative as well. Because the digital era just started and we cant be certain that its life span won't last long I know now we are slipping from the topic but that reality eventually the remaining ones will be us, not our gadgets. So you can say that if we use to say future potential there is a future's future potential in gold. I will make sure to not put all my eggs in one basket.

I think we need to discuss this topic on a particular narrative in another thread.

Just because Blackrock eliminated gold ETFs doesn't mean people will abandon gold and switch entirely to bitcoin. Blackrock is just one investment fund among thousands, and they are not the fund with the most gold in the world or the one who can make people abandon gold and switch to bitcoin. Even if gold ETFs cease to exist, I can guarantee that the value and status of gold will never be shaken because it was used and recognized thousands of years before gold ETFs were approved in 2004.

We are bitcoin investors and we all hope that one day bitcoin will surpass gold in popularity or market capitalization...but we shouldn't deny that gold is still a valuable asset and demand for it remains very high. Let's be realistic.

[SamReomo]

I think it's a strategic move by Blackrock because closing their gold ETF is something that they would never do without a proper strategic plan. I believe this move by Blackrock could have positive impact on price of Bitcoin.

I believe Blackrock can earn more profits from Bitcoin ETF because we all know that Bitcoin's volatility is way higher than that of gold. Gold ETFs won't help to make that much profits even in years which Bitcoin ETF could make in a year or two.

Their main aim behind this decision is of course related to profits and I'm very sure with Bitcoin ETF they can earn those profits. As a part of Bitcoin community I consider this move of BlackRock as a very useful move because it will catch the eye of more investors who may also shift from Gold ETFs to Bitcoin ETFs

[Lucius]

If something doesn't bring you profit, it's logical that you won't have it on offer anymore - and as far as I can see, from time to time BlackRock simply decides to throw ETFs that are no longer profitable out of the game. I don't think it necessarily has anything to do with BTC, but that ETF is more than evident something that attracts their clients due to the fact that BTC volatility is something that far surpasses gold, and thus the possible earnings are much higher.

"As we evolve our platform and launch new strategies, we also constantly assess the regulatory and operating environment as well as how our funds are meeting investors' investment objectives," BlackRock said in a statement.

The closures represent a tiny piece of the iShares franchise, which manages $2.82 trillion in 414 ETFs.

Investor appetite for ETFs has been strong this year, although it has created fierce competition for assets.The eight funds have failed to ignite investor interest, noted etf.com Senior Analyst Sumit Roy.

"What these ETFs have in common is that they all failed to catch on with investors," Roy said."Each of these funds has AUM of less than $50 million, with some less than $5 million. That's peanuts for BlackRock."