Bloomberg ETF analyst Eric Balchunas said Bitcoin ETFs could trace a path similar to gold after exchange-traded funds were introduced, with sharp gains followed by a painful pullback and a slower recovery that tests investor patience. He said both gold and Bitcoin are stores of value that do not generate cash flow, making demand heavily dependent on market sentiment. That setup can fuel strong price surges, but it can also lead to long stretches of stagnation. Based on that comparison, Balchunas said Bitcoin ETFs may end up following the same script: a dramatic rally, a difficult drawdown, and a recovery phase that takes time and patience from investors.
On July 17, Bloomberg ETF analyst Eric Balchunas said Bitcoin ETFs could end up following a path similar to gold, marked by “stunning upside” and a “painful downturn,” before moving into a recovery that tests investor patience.
Balchunas said gold and Bitcoin share a key trait: both are non-yielding stores of value and do not produce cash flow. Because of that, demand for both assets is heavily influenced by market sentiment. That can drive “price explosions,” but it can also leave the market stuck for long periods.
Based on that comparison, he said Bitcoin ETFs may follow the same script: outsized gains, a painful pullback, and then a recovery phase that may require patience from investors.
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