Bloomberg ETF analyst Eric Balchunas has suggested that Bitcoin spot ETFs might follow a similar trajectory to gold ETFs, which have experienced cycles of rapid growth followed by sharp declines and prolonged recoveries. In a recent report, Balchunas highlighted that both gold and Bitcoin ETFs are based on non-yielding assets, with their prices largely influenced by investor sentiment rather than dividends or government backing.
The report notes that the leading gold ETF, GLD, once reached the top of global ETF rankings before entering a lengthy consolidation phase. Despite this, the peaks of each cycle have progressively increased. Balchunas anticipates that Bitcoin ETFs could experience similar cycles, with each high potentially surpassing the previous one over time.
Bitcoin Spot ETFs May Mirror Gold ETF's Cyclical Patterns, Analyst Suggests
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