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Journalist<\/p>\n<\/p><\/div>\n
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- BTC will face competition from the alternative 10X opportunities.\u00a0<\/span><\/em><\/li>\n
- BTC ETFs have recovered in Q2 from outflows to over $10B in net inflows.\u00a0<\/span><\/em><\/li>\n<\/ul>\n
Bitcoin [BTC]<\/span><\/a> jumped from $40K to $75K on U.S. spot ETF approval and later climbed above $100K amid regulatory relief under the pro-crypto Trump administration.\u00a0<\/span><\/p>\n
But the asset may still face future challenges, according to Bitwise CEO Hunter Horsley.\u00a0<\/span><\/p>\n
He <\/span>highlighted<\/span><\/a> the double obstacles as competition from alternative 10x opportunities and \u2018fading\u2019 digital gold narrative amongst institutional investors.\u00a0<\/span><\/p>\n
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\u201cThese two aren\u2019t the most pressing items of this moment, but they will reveal themselves as the next obstacle over the coming quarters.\u201d<\/span><\/p>\n<\/blockquote>\n
\n![\"bitcoins](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/06\/Screenshot-2025-06-20-092521.png\")
<\/a><\/p>\nSource: Hunter Horsley\/X<\/p>\n<\/div>\n
Bitcoins Bitcoin ETF inflows outpace gold<\/strong><\/h2>\n
In the meantime, BTC has enjoyed relative demand from institutional investors in Q2 compared to gold. <\/span>According to ETF inflows across the two hedge assets, in Q2, gold ETF demand dropped 40% from $30B to $15B.\u00a0<\/span><\/p>\n
On the contrary, BTC ETFs recovered from $3.3B outflows to nearly $10B inflows as of press time.\u00a0<\/span><\/p>\n
Horsley <\/span>added<\/span><\/a> that BTC won\u2019t compete with gold, as both attract investors\u2019 attention in the future because they are \u2018apolitical stores of value (SoV).\u2019 But T-bills and bonds will be the new BTC rivals.\u00a0<\/span><\/p>\n
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\u201cRather, I think Bitcoin\u2019s competition is going to end up being U.S. Treasuries and other governments\u2019 bonds (eg, UK gilts): the ultimate *political* SOVs.\u201d<\/span><\/p>\n<\/blockquote>\n
On investors\u2019 returns, however, BTC had a head start from April and outperformed gold by 34%. <\/span><\/p>\n
However, gold has outpaced BTC by 10% since mid-May, per the BTC\/gold ratio, an indicator tracking BTC\u2019s relative price performance against gold.\u00a0<\/span><\/p>\n
\n![\"bitcoins](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/06\/BTCUSD_GOLD_2025-06-20_08-28-55.png\")
<\/a><\/p>\nSource: BTC\/Gold ratio, Trading View\u00a0<\/span><\/p>\n<\/div>\n
This week alone, the ratio only surged 1.5%, suggesting <\/span>BTC held<\/span><\/a> relatively better against gold during Middle East tensions.\u00a0<\/span><\/p>\n
In fact, on a year-on-year (YoY) basis, BTC has surged 58%, offering <\/span>investor returns higher<\/span><\/a> than the S&P 500 Index\u2019s 11% or gold\u2019s 46%. If the ratio extends its rally to 40, then BTC would offer better returns than gold.\u00a0<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
- BTC ETFs have recovered in Q2 from outflows to over $10B in net inflows.\u00a0<\/span><\/em><\/li>\n<\/ul>\n