In a significant turn of events, BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has surpassed the SPDR Gold Trust (GLD) in year-to-date (YTD) inflows for the first time. This milestone marks a pivotal moment in institutional portfolio preferences, occurring even as gold prices have reached historic highs and accrued a YTD return of 23.07%.
A Battle of Safe Havens
The early months of 2025 have been characterized by geopolitical turbulence and a weakening U.S. dollar, influenced by President Donald Trump’s new trade policies. Historically, these factors have led investors to flock to gold, often considered a safe-haven asset for risk-averse investors.
This year, however, Bitcoin has seemingly defied expectations. BlackRock’s ETF recorded inflows of $6.96 billion, surpassing GLD’s $6.51 billion. According to Bloomberg analyst Eric Balchunas, IBIT now ranks sixth among all U.S. ETFs for YTD flows, even achieving this feat with a modest 4.03% return—diminutive compared to gold’s remarkable rally, which propelled its price to an all-time high of $3,435 per ounce.
$IBIT took in another half a billion yesterday, extending its inflow streak to 15 days and is now 6th in YTD flows, outranking $GLD. This is notable because IBIT is only up 4% compared to GLD having the run of its life. To attract more cash under these circumstances is a positive sign for long-term trends and inspires… pic.twitter.com/9HWqYxtyJ4
— Eric Balchunas (@EricBalchunas) May 6, 2025
Some market observers interpret this fund flow divergence as a sign of growing conviction among institutional investors that Bitcoin is no longer just a speculative asset but a necessary long-term portfolio staple.
As noted by Zaheer of Split Capital, “Wall Street can’t get enough of Bitcoin,” which underscores the enthusiasm for the cryptocurrency among fund managers.
Bitcoin’s Institutional Surge
The increasing institutional appeal of Bitcoin aligns with regulatory breakthroughs, particularly the rollback of the contentious SAB 121, previously issued by the U.S. Securities and Exchange Commission (SEC). This bulletin had significantly hindered banks from providing crypto custody services, and its rescission has allowed major financial entities to capitalize on opportunities within the Bitcoin ecosystem.
By the end of April, IBIT witnessed its second-largest single-day inflow ever, accumulating $970.9 million on April 28. Such performance aided in surpassing the symbolic milestone of holding more than 600,000 BTC, three times more than its closest competitor, Fidelity’s FBTC.
Meanwhile, Bitcoin’s price has seen a steady ascent, inching upwards by nearly 3% within the last 24 hours. At the time of writing, Bitcoin traded at $97,026, oscillating between a high of $97,511 and a low of $93,592. The weekly charts depict a 2.2% uptick, outperforming the broader market, which grew by 1.9% during the same period. Over longer durations, Bitcoin’s performance is even more impressive, boasting a 29% rise in the past 30 days and a staggering 52% increase year-over-year.
The developments point to a shifting landscape in how institutional investors perceive Bitcoin and gold, with implications for the future of safe-haven investments.
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