This week in crypto, we’re seeing major developments that highlight Bitcoin’s growing influence in finance and beyond. Bitcoin exchange-traded funds (ETFs) in the U.S. have surpassed gold ETFs in total assets for the first time, marking a key milestone in Bitcoin’s adoption. Meanwhile, Ohio has introduced a bill to allow the state to invest in Bitcoin as part of its treasury reserves, joining Texas and Pennsylvania in exploring crypto-backed financial strategies. Finally, institutional investors made waves in 2024 by purchasing a staggering 859,454 Bitcoin—equivalent to eight years of new supply—demonstrating the surging demand for this digital asset.
Quick Look at This Week’s Stories
- Bitcoin ETFs surpass gold funds: U.S. Bitcoin ETFs exceeded gold ETFs in total assets for the first time, highlighting growing institutional interest in cryptocurrency.
- Ohio considers Bitcoin for treasury reserves: A new bill proposes allowing Ohio to invest in Bitcoin, following similar moves by Texas and Pennsylvania.
- Institutions buy 8 years’ worth of Bitcoin in 2024: Major investors and Bitcoin ETFs purchased 859,454 Bitcoin this year, showcasing rising demand for the digital asset.
Bitcoin ETFs Surpass Gold Funds in Total Assets
Bitcoin exchange-traded funds (ETFs) in the United States have officially surpassed gold ETFs in total assets, marking a significant milestone for cryptocurrency. On December 16, Bitcoin ETFs reached $129 billion in assets under management (AUM), slightly ahead of gold ETFs, which held $128 billion. These ETFs allow investors to gain exposure to Bitcoin without owning it directly, much like gold ETFs do for the precious metal. This achievement is particularly notable since the first spot Bitcoin ETFs only launched in January 2024, showing rapid growth in investor interest. BlackRock’s iShares Bitcoin Trust is currently the largest Bitcoin ETF, managing nearly $60 billion, even overtaking BlackRock’s flagship gold ETF.
This shift may reflect a growing interest in Bitcoin as an alternative to gold, with some investors diversifying their portfolios. Both Bitcoin and gold are often considered “safe-haven” assets, valued for their potential to hold value during times of inflation or economic stress. The rising popularity of Bitcoin ETFs highlights a broader trend of cryptocurrencies becoming more mainstream in the investment world. On December 16, Bitcoin’s value compared to gold reached an all-time high, signaling its increasing role as a competitor to traditional assets.
New Bill Could Add Bitcoin to Ohio’s Treasury
Ohio is considering a new law that would allow the state to buy Bitcoin as part of its financial reserves. On December 17, Ohio House Republican leader Derek Merrin introduced the Ohio Bitcoin Reserve Act, a bill that would give the state treasurer the option to invest in Bitcoin to protect against the weakening value of the U.S. dollar. Merrin said the bill is meant to help Ohio embrace new technology and better manage taxpayer money.
This proposal makes Ohio the third state to explore adding Bitcoin to its reserves, following Texas and Pennsylvania. Texas lawmakers recently proposed a plan to hold Bitcoin for at least five years, and Pennsylvania introduced a bill to use Bitcoin for up to 10% of its treasury reserves as a way to protect against economic uncertainty. Supporters of these bills believe Bitcoin could help strengthen state finances and offer new ways to safeguard public money. Merrin called Bitcoin a “revolution in finance” and said this legislation could prepare Ohio to benefit from its growing influence.
Institutions Bought 8 Years’ Worth of Bitcoin in 2024
In 2024, large organizations known as institutional investors—like banks, hedge funds, and companies—bought a massive amount of Bitcoin, equal to eight years of new Bitcoin production. According to a report from K33 Research, these investors purchased 859,454 Bitcoin, which is 4.3% of all Bitcoin currently available (in circulation). Much of this came from Bitcoin exchange-traded funds (ETFs), which allow people to invest in Bitcoin without directly owning it. U.S.-traded spot Bitcoin ETFs added 561,781 Bitcoin to their holdings, with BlackRock’s Bitcoin ETF leading the way, managing over 542,000 Bitcoin worth nearly $54 billion. The popularity of these ETFs soared this year, with record investments totaling $36.7 billion in just eight months, far outpacing the growth of gold ETFs.
Big companies also got in on the action, adding nearly 300,000 Bitcoin to their reserves in 2024. One company, MicroStrategy, alone purchased almost 250,000 Bitcoin, making it one of the largest Bitcoin holders in the world with 439,000 Bitcoin in total. Despite the release of 230,000 Bitcoin into the market from sources like bankruptcy cases and government seizures, strong demand from these institutional investors helped keep prices steady. This growing interest in Bitcoin from major players has also made more Bitcoin available for trading, improving market activity and stability. Analysts believe these holdings are likely to remain steady, reducing the chances of sudden sell-offs in the future.
