Bitcoin ETFs predicted to surpass gold ETFs by three times

An ETF expert has said that bitcoin exchange-traded funds might become three times larger than those tracking gold as younger generations age.

In an appearance on Bitcoin Magazine TV on Thursday, Bloomberg's senior ETF analyst Eric Balchunas stated that despite bitcoin's present price swings, conditions will shift over time.

After a decade of rejections by the U.S. Securities and Exchange Commission, bitcoin ETFs finally launched in 2024. These ETFs achieved the most successful debut ever for such products and now oversee close to $100 billion in assets, per Coinglass data.

"I think as the younger investors get more money and grow up with Bitcoin as their store of value, I do believe that Bitcoin ETFs will triple gold in assets."

"I do believe the Bitcoin ETFs will triple gold in assets," Balchunas commented.

"I always say Bitcoin is like gold as a teenager — you know, gold is 5,000 years old, it was mentioned 450 times in the Bible. I mean that’s old, and Bitcoin is 17 years old."

Balchunas added that younger generations might be attracted to Bitcoin as the government keeps spending heavily and items become too expensive.

According to Balchunas, Generation Z is currently protesting government deficits and inflation by supporting socialist candidates, but Bitcoin could be a superior option since it cannot be seized by the government.

Censorship resistance is among Bitcoin's key attributes, but investors currently seem more interested in purchasing it as a hedge against currency debasement.

The debasement trade drew strong interest last year and is once again gaining traction in 2026, with investors acquiring non-yielding assets such as gold and bitcoin as the U.S. dollar weakens.

Balchunas also noted that with decreasing price volatility in bitcoin, large institutions will become more inclined to purchase the asset as a store of value.

In 2025, bitcoin experienced its lowest volatility ever in its young history.

"As that volatility and correlation get closer to gold — look out," Balchunas said.

"I think that’s when you have the inflection moment where even the big institutions are like, okay, it’s finally ready for me to use as a sort of reliable store of value, possibly even a safe haven and an alternative," he added.