The year 2024 has marked a significant advance for digital assets, particularly for bitcoin (BTC), driven by greater institutional adoption. This change has occurred through two key avenues: first, the integration of bitcoin into public balance sheets as a treasury asset, and second, the success of US publicly traded exchange-traded funds (ETFs) that have accumulated more than 1 million BTC.
A report from K33 Research reveals that US-listed bitcoin ETFs have outperformed US-listed gold ETFs in terms of assets under management (AUM), including leveraged products such as ETFs based in futures. As of December 17, Bitcoin ETFs reached assets under management (AUM) worth $129.25 billion, surpassing gold ETF AUM at $128.88 billion, according to K33 Research analyst Vetle Lunde.
However, when comparing exclusively spot products, gold remains slightly ahead. According to Bloomberg Senior ETF Analyst Eric Balchunas, US bitcoin spot ETFs hold $120 billion in assets under management compared to $125 billion for gold ETFs.
CME activity remains strong
The CME exchange, primarily used by institutions, continues to see strong activity, with futures open interest approaching new highs, with 212,635 BTC in open interest contracts.
According to the report, the core trading premium has continued to rise, reaching 16.4%, the highest level since November 2023. This indicates that CME traders anticipate further momentum as the year draws to a close.
The report notes: “January contracts are trading at elevated premiums relative to December contracts, and contango widened to 1.5% on Monday, the highest premium for the next month on record since November 2023. The December contract on CME remains the most valuable, with open interest equivalent to 113,480 BTC The upcoming December draw is expected to be significant as several upcoming bank holidays may contribute to further widening of the premium of January.
Momentum has continued over the past month, as U.S. spot-traded bitcoin ETFs have seen net inflows every day since Nov. 27, totaling $6.5 billion, according to data from Farside . It is important to note that as the core trading premium continues to widen and with an increasing number of open interest contracts on the CME, a large portion of these net inflows are part of the cash and carry trade.
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