Senior Bloomberg Strategist Mike McGlone sees gold and spot Bitcoin ETF becoming an ideal pair for investors amid current macroeconomic conditions.
The recent launch of spot Bitcoin ETFs in the United States opens up the opportunity for everyday investors and institutions to get exposure to the cryptocurrency in a simple and efficient manner.
Senior Bloomberg Strategist Mike McGlone also sees the newly launched ETFs paving the way for a greater correlation between Bitcoin, the so-called digital gold, and its older counterpart, Gold.
In a recent analysis, McGlone shed light on the current macroeconomic conditions, which have seen stocks outperform gold since the turn of the year. The precious metal is on the verge of breaking below the $2,000 mark as investors prioritize exposure to risky assets in a bid to generate higher returns.
However, McGlone believes that any dip below that price level will pave the way for gold to continue appreciating for the rest of 2024. While he admits that gold could also face a final straw of resistance because of the surging stock market, he expects the metal to deliver decent returns.
McGlone adds that the recently launched Bitcoin ETFs could become the ideal pairing for investors with exposure to gold.
The cryptocurrency is on track for a stellar year and may allow investors to see greater returns while preserving the value of their holdings, as most expect to do with gold exposure.
#Gold $2,000? #Bitcoin, Stocks and Headwinds That May Turn Tail – The gold price dipping below $2,000 an ounce would appear for good reason to augur the potential for the metal to continue appreciating in 2024. A final straw of gold resistance may be the resilient US… pic.twitter.com/DGU5nspotZ
— Mike McGlone (@mikemcglone11) February 20, 2024
Bitcoin ETFs to Further Drive Gold Comparison
Mike McGlone’s latest analysis underscores how critical the approval of the Bitcoin ETFs is for the asset’s future. The ETFs legitimize and institutionalize BTC, bringing the asset to an elite investor class and on the brink of mainstream adoption.
The funds also provide an easier yardstick for investors to measure Bitcoin’s potential compared to gold. Bitcoin outperformed gold by 10x in the past year and has already gotten the new year off to a good start.
While the ETFs have attracted over $5 billion and helped BTC gain 25% year-to-date, gold currently has a negative 1.46% return over the same timeline. A pairing of both assets could minimize losses for gold holders and further boost returns if projections from McGlone play out.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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