Said it would catch QQQ...Bitcoin (BTC) Spot ETF 'Completely Defeated' by Artificial Intelligence (AI) Stock Influx

▲ Bitcoin (BTC) Spot ETF, Invesco QQQ Trust (QQQ), US Stock Market, Technology Stocks/AI Generated Image

As money pours into artificial intelligence stocks, the chase for cryptocurrency exchange-traded products is being pushed back. The growth narrative of Bitcoin (BTC) spot ETFs is also losing momentum in the face of Invesco QQQ Trust's (QQQ) surge.

According to Benzinga, an economic media outlet, on June 24 (local time), cryptocurrency asset management firm 21Shares diagnosed in its mid-year report that the competition between cryptocurrency exchange-traded products and technology-focused ETFs is skewed. While institutional adoption of digital assets continues, cryptocurrency products are failing to keep up with the Nasdaq 100's momentum.

Earlier this year, 21Shares predicted that the global assets under management (AUM) for cryptocurrency exchange-traded products would exceed $400 billion and could even surpass QQQ's asset size. However, as of May, the global AUM for cryptocurrency exchange-traded products remained at approximately $140 billion. Of this, Bitcoin exchange-traded products accounted for about $110 billion.

Conversely, QQQ rode the wave of artificial intelligence and technology stock investment frenzy. Its assets under management approached $500 billion. Benzinga reported that funds flocked to stocks related to AI infrastructure, semiconductors, cloud computing, and robotics.

21Shares viewed opportunity cost as a greater barrier than regulation. The explanation is that investor funds shifted to publicly traded stocks related to artificial intelligence, robotics, and space, reducing demand for highly speculative cryptocurrency investments. Cryptocurrency products are struggling to attract similar amounts of new capital amidst weakening digital asset prices.

However, cryptocurrency ETF investors have not completely exited. US Bitcoin spot ETFs experienced a net outflow of approximately $3 billion this year. Nevertheless, the total holdings remained near record levels, exceeding 1.25 million BTC.

Benzinga reported that while cryptocurrency ETFs are moving towards maturity, AI stock ETFs currently have the upper hand in the competition for funds. The goal of cryptocurrency products, which once aimed to overtake QQQ, has been pushed back as a task for the next market cycle, not the current one.

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