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Bitcoin: capitalization is at its ATH compared to gold
By Davide Grammatica
Bitcoin's market capitalization has touched a new ATH, this time relative to gold: all thanks to ETFs
A new ATH for BTC
According to what Galaxy Research shared in a recent report, Bitcoin would have recorded at this late stage of 2024, a new ATH. This is not about the price in an absolute sense, but about its capitalization, and the figure is by no means minor.
Indeed, Bitcoin’s market capitalization would have touched its ATH in relation to that of gold, reaching 14 percent.
Credit must be given to the BTC spot ETFs, which have come to record these days an AUM (volume of assets under management) of $129 billion, higher than that of gold-related ETFs, which today stand firm at $128 billion. As K33 Research also reports, it took only one year for ETFs based on the first cryptocurrency to catch up with their “gold” counterparts, which have instead already been available to investors for more than 20 years.
In the United States, Bitcoin ETF AUM has surpassed gold ETF AUM.
Gold, with a 20-year head start, has been flipped. pic.twitter.com/nyCWtKtQaB
— Vetle Lunde (@VetleLunde) December 17, 2024
The result is extraordinary, and has exceeded the expectations of many. Not only for in numbers per se, but for the radical change they have brought about among institutional investors in relation to their approach to the cryptocurrency industry. As Eric Balchunas of Bloomberg points out, it is literally a “reshaping of institutional interest.”
In 5-8 years it will be 100 percent https://t.co/wIQHXD5wYN
— Mike Novogratz (@novogratz) December 17, 2024
Bitcoin goes for gold
Bitcoin alone exceeds $2 trillion in capitalization, ranking seventh among the most important assets in this respect. It is ahead of silver and Saudi Aramco, and behind only hi-tech giants such as Apple, Microsoft and Nvidia.
Gold remains (almost) unreachable at its 17 trillion share, with a dominant position in the market and higher than those combined behind it, but Bitcoin’s trend makes investors particularly optimistic. The gap, by the way, would be even smaller when considering the total capitalization of the crypto industry, which has reached $3.7 trillion. According to Mike Novogratz, ceo of Galaxy Research, among the most optimistic, it will be enough to wait between 5 and 8 years.
