Balchunas says spot BTC ETFs may swing like gold ETFs

Bloomberg ETF analyst Eric Balchunas said the trajectory of gold ETFs over the past 22 years may be the closest comparable case for gauging how spot Bitcoin ETFs could evolve. He explained that both gold and Bitcoin are stores of value that do not generate cash flow, meaning investor sentiment drives prices more than corporate earnings or interest rates, unlike stocks or bonds. Balchunas added that SPDR Gold Shares (GLD), a spot gold ETF, once became the world’s largest ETF before going through about eight years of weakness and later recovering. He said spot Bitcoin ETFs may likewise go through repeated sharp rallies and steep pullbacks that test investors’ patience, while noting that gold ETFs have gone on to surpass previous highs over successive cycles, suggesting spot Bitcoin ETFs could follow a similar long-term pattern.