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Bitcoin Price Outperforms ETFs from Invesco QQQ, TLT, VGLT, and GLD

Table of Contents
  • Bitcoin price has been in a strong bull run in the past few months.
  • It surged to a high of $30,000 during the weekend.
  • It has outperformed the likes of Invesco QQQ, TLT, VGLT, and GLD ETFs.

Bitcoin’s strong performance recently has seen it beat some of the biggest assets in the financial market. The coin has soared by more than 85% this year, outperforming the tech-heavy Invesco QQQ ETF, which has risen by less than 30%, and the iShares 20+ Year Treasury ETF (TLT), which has plunged by over 20%.

It has also done better than the Vanguard Long-Term Bond ETF (VGLT). While Bitcoin price has dropped from $67,000 in 2021 to $30,000, it has still outperformed these assets in the past five years. It has risen by almost 400% while QQQ has jumped by 125%. VGLT and TLT ETFs have been in the red during this period.

Bitcoin has also beaten the SPDR Gold Trust (GLD), the biggest ETF that tracks gold prices. While gold price has surged to $2,000, its performance has lagged Bitcoin in the past decade. Therefore, some analysts recommend that gold bugs should invest instead.

Most notably, Bitcoin price has soared by 147% since 2020 when MicroStrategy started to accumulate the coin. In the same period, the Nasdaq 100 index has jumped by less than 20% while gold has slipped by 3%. Michael Saylor, one of the biggest shareholders in MicroStrategy, said that he believes that BTC is digital gold.

Bitcoin’s resilience in a high-interest rate environment means that it will likely attract inflows when the SEC approves the ETF. Analysts at JPMorgan believe that the SEC will approve the ETF in the next few weeks or months. In the past, most analysts believed that Bitcoin would collapse when the interest rates surged. They have now rose from zero to 5.50%, the highest point in more than a decade.

BTC has done better than long-term government bonds, which have collapsed in the past few months. As a result, VGLT and TLT ETFs have slumped to their lowest levels in almost a decade. This implies that investors are more comfortable holding Bitcoin than long-term US government bonds.

These bonds have become extremely risky as US government spending continues while tax receipts fall. A report by the Treasury Department showed that the government budget deficit widened to over $1.7 trillion in the last financial year.


Investing Simplified - Professor G

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.


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