Bitcoin exchange-traded funds (ETFs) in the U.S. could outpace and potentially triple the size of gold ETFs over the next 3 to 5 years, according to Bloomberg Senior ETF Analyst Eric Balchunas. Speaking in a recent interview with digital asset manager CoinShares, Balchunas laid out a bullish forecast for crypto-backed investment vehicles and reflected on the broader adoption and legitimacy of digital assets.

Balchunas, one of the most prominent voices in the ETF research space and author of The Bogle Effect, pointed to the “benefit-rich” nature of ETFs and an increasingly favorable regulatory climate as key drivers of future growth. “Bitcoin ETFs have already reached over $40 billion in net flows, with market appreciation bringing them closer to $120 billion in assets,” Balchunas said. “That’s just shy of gold—and we think they could triple gold ETFs within the next five years.”

Here are three key takeaways from the conversation:

Balchunas noted that the overwhelming success of spot Bitcoin ETFs has exceeded even the most optimistic forecasts. Bloomberg’s ETF team initially predicted $10–15 billion in net flows during the first year. Instead, flows topped $38 billion, more than doubling their high-end estimate. “It took gold more than a decade to reach these levels,” he said. “Bitcoin ETFs got there in months.”

For retail investors, ETFs have reduced the friction traditionally associated with crypto. Rather than dealing with wallets, exchanges, and bank transfers, investors can simply purchase exposure through a brokerage account. “You just roll out of bed, log into Schwab, click ‘buy,’ and you’re in,” Balchunas added.

Balchunas emphasized that the June 2023 filing by BlackRock for a Bitcoin ETF was a landmark moment that accelerated the institutionalization of crypto. Coming less than two years after the FTX scandal, which damaged crypto’s public image, the BlackRock move carried symbolic weight.

“When the largest asset manager in the world files for a Bitcoin ETF, people start asking, ‘What do they know?’” he explained. Other institutional giants followed suit—Fidelity, Invesco, Ark—and with the SEC’s eventual approval, a wave of legitimacy followed. Balchunas referred to this phase as the “financialization” of Bitcoin, drawing a contrast to earlier retail-driven speculation.

With new leadership at the SEC and increasing political momentum behind crypto, Balchunas believes the regulatory landscape in the U.S. is quickly liberalizing. “You’re going to see a framework rolled out soon—spot ETFs for other coins are coming,” he said, predicting approvals for altcoins like Dogecoin, and possibly even memecoins like the controversial “Trump Coin.”

While cautioning that there’s still a long way to go before crypto self-custody becomes as user-friendly as ETFs, Balchunas argued that the ETF format remains the best path for mainstream exposure: “Until Bitcoin custody becomes as easy as fantasy football, ETFs are going to dominate.”

With ETFs now deeply embedded in investor behavior and blockchain quietly reshaping back-end infrastructure, Balchunas remains convinced that the crypto ETF space is only in its early innings.

For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.