Bloomberg senior ETF analyst Eric Balchunas says Bitcoin ETFs could grow three times larger than their gold counterparts as the asset matures. He points to Bitcoin's short history, its appeal to younger investors, and its falling volatility as reasons institutions may eventually treat it as a reliable store of value.
Bitcoin ETFs could end up three times the size of gold ETFs as younger investors age into the market, Bloomberg senior ETF analyst Eric Balchunas said Thursday on Bitcoin Magazine TV.
Balchunas: Bitcoin ETFs will triple gold in assets
According to Balchunas: "I do believe the Bitcoin ETFs will triple gold in assets". He compared Bitcoin's age to gold's, noting gold is 5,000 years old and was mentioned 450 times in the Bible, while Bitcoin is only 17 years old.
Bitcoin ETFs debuted in 2024 after a decade of denials from the U.S. Securities and Exchange Commission. The funds manage nearly $100 billion in assets, according to Coinglass data.
Younger investors and the debasement trade
Balchunas said younger generations could be drawn to Bitcoin as governments keep spending and living costs rise. He said Generation Z is currently rebelling against government deficits and inflation by voting for socialist politicians, but Bitcoin might be a better bet because governments can't confiscate it.
One of Bitcoin's selling points is its censorship resistance, but investors appear more focused on buying it as a hedge against currency debasement. The so-called debasement trade was popular last year and is picking up again in 2026 as investors buy non-yielding assets like gold and Bitcoin while the dollar weakens.
Falling volatility could draw institutions in
Balchunas added that as Bitcoin's price becomes less volatile, big institutions will grow more interested in buying it as a store of value. Bitcoin had its least volatile year in its short history in 2025.
As that volatility and correlation get closer to gold's, Balchunas said, that's when institutions may finally view Bitcoin as a reliable store of value, and possibly even a safe haven.
Source: Bitcoin Magazine
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