As Bitcoin continues to outperform traditional safe-haven assets such as gold or bonds, providers of Bitcoin exchange-traded funds (ETFs) will likely double down on their new products.
Bitcoin's (BTC) asymmetric returns and low correlation could serve as a “strong support” for the recently launched spot Bitcoin ETFs, given that institutional players are likely to continue to fuel continued enthusiasm for cryptocurrency ETFs.
In a research report, analysts at Caico noted that the largest cryptocurrency by market cap has accumulated more than $2 billion in net inflows since the launch of its spot ETFs on January 10, indicating growing investor appetite for Bitcoin as a safe-haven asset amid the uncertainty. Widespread certainty in the market. .
The 60-day correlation between BTC and the Nasdaq 100 has seen a significant decline over the past year, Caico said, adding that since June 2023, this correlation has always been close to zero.
“In general, Bitcoin offers much higher returns than other traditional safe havens such as gold, US bonds or the dollar.”
Sidewalk
While Bitcoin has strengthened its position as a safe-haven asset by maintaining a low correlation with traditional markets, its appeal is further enhanced by offering much higher returns compared to assets such as gold, US bonds or the dollar. Notably, Bitcoin showed exceptional performance during the US banking crisis in 2023, attracting “significant safe haven flows,” the Paris-headquartered company added.
While gold prices rose 15% in 2023, reaching a record annual close of $2,078 per ounce, Bitcoin rose more than 154%, contributing $530 billion to its market value.
However, as of press time, BTC is having difficulty crossing the $40,000 threshold due to seemingly consistent sales of Grayscale's Bitcoin Trust (GBTC). As previously reported by crypto.news, Grayscale Investments sold more than $2.14 billion worth of Bitcoin following the US Securities and Exchange Commission's approval of its Bitcoin exchange-traded funds.
