Bitcoin To ‘Augment’ Gold As The ‘Next Strategic Reserve Asset,’ Says Expert
By Benzinga
Boosted by post-election euphoria, experts muse whether Bitcoin (CRYPTO: BTC) could potentially close the gap to gold as a strategic reserve asset.
What Happened: Barbara Goodstein, Managing Partner at R360, told CNBC on Monday that BlackRock‘s Bitcoin ETF has now surpassed its gold ETF in terms of assets under management.
This emphasizes the growing investor optimism towards Bitcoin and private equity following the U.S. presidential election.
While gold continues to be a safe haven for investors, the sentiment is gradually shifting towards Bitcoin, with a growing number of investors choosing to invest directly in Bitcoin to avoid tax implications associated with ETFs.
Goodstein pointed out the growing belief that Bitcoin could soon become a strategic reserve asset.
There are predictions that the U.S. government, which currently holds 232,000 BTC, might increase its reserves to over a million BTC.
Rather than replacing gold, Bitcoin is expected to “augment” it, potentially leading to a “Bitcoin Fort Knox,” Goodstein noted.
Also Read: Bitcoin Nears $90,000—How High Can The Apex Crypto Go?
Why It Matters: Bitcoin’s 25% weekly price surge sparked a massive influx of funds into spot Bitcoin ETFs. Farside Investors data shows total Bitcoin spot ETF net inflows of $1.114 billion on Monday.
The surge was led by positive market sentiment and the fear of missing out (FOMO), led both retail and institutional investors to increase their exposure to Bitcoin.
Asset management firm Bernstein on Monday reiterated a robust bullish stance on the crypto market, encouraging investors to “buy everything you can” as Bitcoin surged above $82,000. This bullish sentiment further underscores the growing investor interest in Bitcoin.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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