How Will the Spot Bitcoin ETF Affect Gold Prices?

Gold hasn't experienced much competition as an alternative for general investors looking to diversify their portfolios. However, it's only a matter of time before spot Bitcoin exchange-traded funds hit the market in 2024. That one percent analyst says it's possible that this situation could change.

This development will probably be detrimental to gold!

As you can see from Kriptokoin.com, it is only a matter of time before the SEC approves spot Bitcoin ETFs. Joy Yang, Global Head of Index Product Management at MarketVector Indexes, says the approval of the Bitcoin ETF could keep gold prices around $2,000 for most of the year as the cryptocurrency becomes an attractive alternative. In this context, the analyst makes the following statement:

A Bitcoin ETF will be the shiny new thing on the market. A lot of investors love shiny new things. There are some big players in the market, so there's a good chance that Bitcoin will be a popular alternative as part of a diversified portfolio. This can be to the detriment of gold.

### SEC's Bitcoin ETF approval is only a matter of time!

Joy Yang's comments come at a time when Bitcoin proponents are waiting for the Securities and Exchange Commission to approve several ETF applications, and the decision will come out shortly. Eric Balchunas, an analyst at Bloomberg Intelligence, sees a 95% chance that Bitcoin ETFs will be approved in January. In addition, experts expect the SEC to approve multiple ETFs. Experts suggest that this will ensure that no firm has a first-mover advantage.

Yang says that while there is a chance that a Bitcoin ETF will not be approved this week, the SEC is running out of excuses to delay its decisions. He notes that it is only a matter of time before ETFs are approved.

### **Enough risk for gold to hold its gains **

The leading cryptocurrency surged to a record high of around $69,000 in 2021. During this period, the gold market experienced similar competition to Bitcoin. According to some analysts, Bitcoin's rally has weighed on gold prices, affecting the market by about 3%. Experts expect the resurgence of interest in cryptocurrencies to affect the gold market. However, Yang does not expect gold prices to fall below $2,000 this year. "There is enough market uncertainty and geopolitical risk for gold's gains in 2023 to continue into 2024," Yang said.

Joy Yang expects gold prices to trade in the range of $2,000 to $2,100 by 2024. However, it also takes into account aggressive Fed rate cuts. He adds that this development will cause gold to shine despite Bitcoin's long shadow.

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