Bloomberg ETF analyst Eric Balchunas said in a recent report that the 22-year trading history of gold ETFs could serve as a useful reference point for Bitcoin ETFs. He said both gold and Bitcoin ETFs package assets that do not generate yield, meaning they lack dividends, coupon payments, or government backing, and their prices are driven largely by investor sentiment. The report highlighted SPDR Gold Shares (GLD), which at one point became the world’s largest ETF before entering a downturn and consolidation period that lasted about eight years. Even so, each cycle still produced a higher peak. Balchunas said Bitcoin ETFs could follow a similar pattern, with repeated phases of rapid gains, sharp pullbacks, and long recoveries, while cycle highs may continue to rise over time.
Bloomberg ETF analyst Eric Balchunas said in a recent report that the 22-year trajectory of gold ETFs may provide an important reference for Bitcoin ETFs.
According to the report, both gold ETFs and Bitcoin ETFs are packaging products built around “non-yielding assets.” They do not offer dividends, coupon payments, or government backing, and their prices are driven mainly by investor sentiment.
Balchunas pointed to GLD, the leading gold ETF, which at one stage became the world’s largest ETF. It then went through a sluggish consolidation period that lasted about eight years, though each cycle still reached a higher peak.
He said Bitcoin ETFs may also go through repeated cycles of rapid climbs, sharp pullbacks, and long recoveries, with cycle highs potentially rising step by step over time.
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