Difference Between Gold ETF and Bitcoin ETF

Gold ETF is a commodity-based mutual fund that invests in assets such as gold. Exchange-Traded Fund. These foreign currency funds operate like equities and are exchanged on the stock exchange in the same way.

A Bitcoin ETF would function the same, with a one-size-fits-all share pricing fluctuated in the exchange-traded fund. If bitcoin climbs, the ETF climbs, and the other way around.

Comparison Table Between Gold ETF and Bitcoin ETF

Parameters of Comparison Gold ETFBitcoin ETF
DefineGold ETFs are perfect for investors wanting to keep track of the actual gold price in real-time.A bitcoin ETF imitates the digital currency's price, allowing investors to purchase into the ETF without Bitcoin trading.
Introduced Gold ETF was introduced in 2007.Bitcoin ETF was introduced in 2009.
Place of originGold ETF was launched in India.Bitcoin ETF was launched in Brazil.
Volatile assetGold ETF is a volatile asset.Bitcoin ETF is not a volatile asset.
CorrelationCorrelated according to the market rates.Low positive correlation.

What is Gold ETF?

Gold ETFs are perfect for investors wanting to keep track of the actual gold price in real-time.

Those who do not want the real commodity to hold but want to increase their income via trade in precious metals could invest in such exchange-traded funds.

In recent years, gold-based traded funds have surpassed stock benchmark indexes, making them an attractive choice for cautious borrowers.

For instance, if the price of gold unexpectedly plummets, investors can employ short-term traded funds to reduce their losses.

If large currencies such as the dollar tend to become weak, the gold price can increase by a substantial margin. An individual might benefit from this abrupt decline by investing in gold ETF.

What is Bitcoin ETF?

A bitcoin ETF imitates the digital currency's price, which allows investors to purchase into the ETF without Bitcoin trading.

The prospect of an ETF tracking bitcoin is the greatest way for crypto-monetary entertainers and investors who want to take advantage of the rising popularity of ETFs.

The SEC also hesitates to let an ETF that focuses on the nascent and mainly inexperienced bitcoin industry enter the public.

In addition, because ETF holders would not be investing themselves directly in Bitcoin, they will not have to worry about the sophisticated storage and security processes that investors need.

Main Differences Between Gold ETF and Bitcoin ETF 

  1. Gold ETF is a volatile asset, whereas bitcoin ETF is not a volatile asset.
  2. Gold ETFs are perfect for investors wanting to keep track of the actual gold price in real-time, whereas bitcoin ETF imitates the digital currency's price, which allows investors to purchase into the ETF without Bitcoin trading.
Difference Between Gold ETF and Bitcoin ETF

Conclusion

In the opinion of some market experts, Bitcoin is still seeking its position within the spectrum of asset allocation, although several supporters of the digital currency generally compare it to gold.

"Bitcoin and gold are seen as rare, can be maintained outside normal financial markets, and have values which cannot be inflated by the constant generation of money and currency deterioration.

References

  1. https://www.sciencedirect.com/science/article/pii/S1544612318305695
  2. https://www.tandfonline.com/doi/abs/10.1080/13504851.2017.1340564
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