Matrixport Report: Bitcoin Is Better Than Digital Gold

Gold Prices Tread Water Ahead of Fed Meeting, Geopolitics in Focus

Key Insights

  • Matrixport highlights the substantial connection between Bitcoin and gold as stores of value in a recent report.
  • Bitcoin’s market cap now stands at $540 billion, equivalent to 10.8% of physical gold’s market cap, while gold ETFs lag behind at $200 billion.
  • The report suggests that SEC approval of a U.S.-listed spot Bitcoin ETF could inject $20 – $30 billion into the cryptocurrency market, potentially sparking a significant rally.

The connection between gold and Bitcoin, hailed by many as the digital gold, is not only evident but pivotal in understanding the trajectory of the cryptocurrency’s rise to prominence, according to insights unveiled in a recent report by Matrixport, a prominent crypto services provider.

Matrixport’s report, released on a bright Monday morning, has shed light on the indisputable role of Bitcoin as a digital store of value. With Bitcoin’s market capitalization standing tall at a staggering $540 billion, it now claims an impressive 10.8% share of the market cap commanded by physical gold.

Intriguingly, this valuation disparity doesn’t stop there. The report further underlines that gold exchange-traded funds (ETFs), a traditional stalwart in the world of wealth storage, pale in comparison, collectively valued at a comparatively modest $200 billion.

Will SEC Approval Spark a $30 Billion Crypto Surge?

The noteworthy revelation in the Matrixport report lies in its forecast regarding the Securities and Exchange Commission (SEC) potentially approving a U.S.-listed spot Bitcoin ETF.

Analysts at Matrixport believe that this could be the catalyst for an influx of capital ranging from $20 billion to an eye-popping $30 billion into the Bitcoin ecosystem. If this prophecy unfolds, it has the potential to ignite a monumental rally in the cryptocurrency market, with Bitcoin leading the charge.

However, the SEC’s stance on this matter has been nothing short of enigmatic, having deferred its decision on all new applications for a spot Bitcoin ETF until October. The cryptocurrency community remains optimistic, eagerly awaiting this long-awaited regulatory nod, anticipating a watershed moment that would usher mainstream investments into the realm of digital assets.

Bitcoin’s Advantage Over Gold

The report, however, doesn’t merely dwell on the comparative market valuations. It delves deeper into the fundamental distinctions between gold and Bitcoin. Notably, Bitcoin’s edge lies in its adaptability to the digital age.

While gold’s sheen as an asset has been tarnished by the limitations it carries, especially in the context of international borders, Bitcoin emerges as the knight in shining armor. With the ability to memorize private keys, Bitcoin eliminates the looming threat of confiscation, a weakness that gold continues to grapple with.

Markus Thielen, the head of research at Matrixport, doesn’t mince words when he asserts, “Even today, storing assets in the form of gold has not only become unfashionable in the digital age, but comes with significant restrictions when crossing borders.”

Thielen emphasizes that “Bitcoin offers a solution to this dilemma, enabling the swift and relatively inconspicuous movement of value across borders.”

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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