There are those who are considering Bitcoin (BTC USD) and other cryptocurrencies are little more than a kind of digital gold. They eventually find that there are elements of scarcity and, except for a few modest points, there is a lack of government connection to both. But cryptocurrencies are certainly growing in popularity over gold, as evidenced by recent changes in the number of assets under management for the SPDR Gold Shares ETF (NYSEARCA:GLD) and how many are managed with spot Bitcoin ETFs.
Recently, 11 such Bitcoin ETFs were launched, which has actually only been an option for investors since January 11th. But they caught on — boy, did they ever — and now the 11 of them collectively account for over $60 billion in assets under management. That alone might not mean much — it's spread across 11 funds, after all — but the problem is that the SPDR Gold Shares ETF only has $56.9 billion under management. In fact, this means that there are more assets tied up in Bitcoin than in gold, at least in some respects.
Investors buy both at the same time
Here, however, things get a little more interesting. Even as investors turn to cryptocurrency, they don't necessarily have to give up on gold. JPMorgan reports that both retail and institutional investors are buying Bitcoin – the numbers support this well – but they are buying both at the same time.
JPMorgan noted that there has been an increase in both gold and Bitcoin futures since February. In fact, hedge funds and other “speculative institutional investors” bought both almost simultaneously, perhaps using one as a hedge against the other.
Is GLD a good buy right now?
A look at the last five trading days of GLD shows a slight decline of just 1.01%. The decline didn't happen all at once either, as GLD stock prices plateaued several times before experiencing slight declines and slight recoveries.
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