Analyst Predicts Bitcoin ETFs to Surpass Gold ETFs in Size
ETF analyst James Seyffart believes Bitcoin ETFs provide a broader range of applications for typical investor portfolios compared to gold ETFs.
According to ETF analyst James Seyffart, spot Bitcoin exchange-traded funds (ETFs) have the potential to exceed gold ETFs in terms of total assets under management (AUM) as demand from investors grows beyond the conventional "digital gold" concept.
Speaking on the Coin Stories podcast that was published to YouTube on Friday, Seyffart stated, "There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio." He highlighted Bitcoin's (BTC) function as digital gold, a wealth preservation tool, a means of portfolio diversification, and a type of digital capital and property, while also noting that the market perceives Bitcoin as a "growth risk asset."
According to Seyffart's analysis, Bitcoin possesses "all these different ways" it can be perceived, whereas gold has only "one of those things."
"Our view is that Bitcoin ETFs will be larger than gold ETFs," he stated.
Bitcoin ETFs are a "hot sauce" in the portfolio
"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," Seyffart explained. "It can be hot sauce in a portfolio in that way," he further elaborated.
Due to its capped supply and its perceived function as protection against currency devaluation, Bitcoin is frequently likened to gold.
During March, gold ETFs based in the US experienced net outflows totaling $2.92 billion, whereas US spot Bitcoin ETFs drew in $1.32 billion in net inflows during the identical timeframe.
Gold and BTC have declined over the past 30 days
GLD, the biggest US gold-backed ETF, saw a $3 billion outflow on Mar. 4, marking the largest single-day withdrawal in over two years.
On Mar. 19, data cited by Cointelegraph from the Bank for International Settlements (BIS) revealed that retail gold purchases have tripled over the last six months, while Wall Street selling has accelerated over the past four months.
In spite of the difference in ETF flows, both assets have experienced similar price movements in recent weeks.
At the time of publication, Bitcoin is trading at $66,918, representing a decline of 8.07% over the past 30 days, according to CoinMarketCap. Meanwhile, gold is trading at $4,676, showing a decline of 8.25% over the past 30 days, according to GoldPrice data.
In December 2025, Chris Kuiper, an analyst at Fidelity Digital Assets, stated that, "historically, gold and Bitcoin have taken turns outperforming. With gold shining in 2025, it would not be surprising if Bitcoin takes the lead next."