U.S.-based spot Bitcoin ETF products have recently outparred gold, with the flagship coin enjoying a bullish sentiment, whereas the traditional asset is mainly waning. Recent price metrics reveal that BTC topped the $96K mark, up nearly 2% over the week. Whereas, gold’s price lost nearly 2% over the last 5 days, at $3,247.40 per ounce.
BTC ETF products have quietly recorded robust inflows in sync with this bullish price action, reaching nearly $2 billion in the past 7 days. Simultaneously, the see-saw dynamic between both assets further implied that a bullish Bitcoin market looms right over the horizon.
Bitcoin ETF Vs. Gold: Robust Inflows & Sharpe Ratio Hints At BTC Era Ahead
According to the latest statistics by SosoValue, U.S. Bitcoin ETF products saw inflows worth $1.81 billion this week. Data suggests that the exchange-traded products recorded consecutive weekly inflows for the second time this Q2.
Last week (ending April 25), U.S. BTC ETF products recorded a staggering $3.06 billion in inflows, marking the first week of consecutive inflows since March end. Now, with nearly $2 billion worth of inflows as of the week ending May 2, institutional demand for the flagship crypto appears to be on a notable rise.
As of reporting time, these U.S.-based BTC ETF products held $113.15 billion worth of assets. On the other hand, it’s also worth pointing out that gold has been outperforming Bitcoin since the beginning of this year, although a paradigm shift in risk assets’ market sentiment has emerged as contrary.
Here’s What Sharpe Ratio Signals
According to Fidelity’s Global Macro Director Jurrien Timmer’s X post, the see-saw dynamic between Bitcoin & Gold suggests that the crypto is about to outweigh the traditional asset. The Sharpe Ratio for BTC is at 0.40, whereas gold’s is at 1.33.
For context, the Sharpe Ratio measures the risk-adjusted returns of an asset. The higher the ratio, the better the return per risk unit. However, the negative correlation between the two assets suggests that BTC’s ratio highlights an underperforming movement. Trimmer stresses, “So perhaps we are due for a baton-pass from gold to bitcoin.”
Besides, CoinGape reported that crypto critic Peter Schiff still predicts a Gold rally is possible, primarily driven by U.S. macroeconomic policies. Broader market participants continue to extensively eye Bitcoin ETF products relatively more than Gold, speculating over potential investment opportunities amid dynamic stats.
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