Gold has not experienced much competition as an alternative asset for general investors looking to diversify their portfolios. However, it is only a matter of time before spot Bitcoin exchange-traded funds enter the market in 2024. This one percent analysts say that it is possible for this situation to change.
This development will probably be harmful for gold!
cryptokoin.comAs you follow from , it is now only a matter of time before the SEC approves spot Bitcoin ETFs. Joy Yang, Global Head of Index Product Management at MarketVector Indexes, says the approval of a Bitcoin ETF could keep gold prices around $2,000 for much of the year as the cryptocurrency becomes an attractive alternative asset. In this context, the analyst makes the following statement:
A Bitcoin ETF will be the shiny new thing on the market. Many investors love shiny new things. There are some big players in the market, so there’s a good chance Bitcoin will become a popular alternative asset as part of a diversified portfolio. This situation may be detrimental to gold.
SEC’s Bitcoin ETF approval is just a matter of time!
Joy Yang’s comments come as Bitcoin advocates expect the Securities and Exchange Commission to approve several ETF applications, with a decision coming soon. Bloomberg Intelligence analyst Eric Balchunas sees a 95% chance of Bitcoin ETFs being approved in January. Additionally, experts expect the SEC to approve multiple ETFs. Experts argue that this will ensure that no company has the first mover advantage.
Yang says that while there is a possibility that a Bitcoin ETF may not be approved this week, the SEC is running out of excuses to delay their decision. He notes that it is only a matter of time before ETFs are approved.
There is enough risk for gold to hold on to its gains
The leading cryptocurrency rose to a record high of around $69,000 in 2021. During this period, the gold market experienced a similar competition with Bitcoin. According to some analysts, Bitcoin’s rally put pressure on gold prices, affecting the market by about 3%. Experts expect the renewed interest in cryptocurrencies to affect the gold market. However, Yang does not expect gold prices to fall below $2,000 this year. “There is enough market uncertainty and geopolitical risk for gold to continue the gains it made in 2023 into 2024,” Yang says.
Joy Yang expects gold prices to trade in the range of $2,000 to $2,100 by 2024. However, she also factors in aggressive Fed rate cuts. She adds that this development will cause gold to shine despite Bitcoin’s long shadow.
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