Gold ETFs Inflow Takes Over Bitcoin ETFs Amid Historic Rally

Gold ETFs Surpass Bitcoin ETFs as Investors Seek Safe-Haven Assets

Gold exchange-traded funds (ETFs) have outpaced bitcoin ETFs in assets under management as investors increasingly turn to the stability of gold amid heightened market uncertainty. Over the past three months, bitcoin (BTC) has dropped more than 19%, while gold has climbed 12.5%, reaching record-high prices.

Key Market Trends:

Bitcoin ETFs have suffered $3.8 billion in outflows since February 24, according to data from Farside Investors.

Gold ETFs recorded their largest monthly inflows since March 2022, per the World Gold Council.

The shift in investor sentiment has allowed gold ETFs to “reclaim the asset crown over bitcoin ETFs,” as noted by Bloomberg Senior ETF Analyst Eric Balchunas.

Market Context:

Bitcoin ETFs initially saw strong inflows following their U.S. debut in January 2024, but the recent downturn in BTC prices has led to significant capital outflows. The decline in cryptocurrency markets has coincided with increased demand for gold, traditionally viewed as a safe-haven asset during times of economic uncertainty.

The surge in gold prices and ETF inflows signals a broader shift in investor preference amid concerns over market volatility, inflation, and geopolitical risks. With gold ETFs now surpassing bitcoin ETFs in assets under management, the trend highlights renewed confidence in traditional stores of value.