Gold exchange-traded funds (ETFs) have recently overtaken bitcoin ETFs in assets under management, reflecting a notable shift in investor sentiment. As the price of Bitcoin (BTC) has plummeted more than 19% over the past three months, investors are increasingly turning to gold, a traditional safe-haven asset, which has seen a remarkable 12.5% increase in value.
Following their U.S. launch in January last year, bitcoin ETFs enjoyed substantial inflows; however, the tide has turned dramatically. According to data from Farside Investors, bitcoin ETFs have experienced significant outflows, losing approximately $3.8 billion since February 24 of this year. In contrast, gold ETFs recently reported their highest monthly inflows since March 2022, as detailed by the World Gold Council.
Due to these substantial flows, gold ETFs have now “reclaimed the asset crown over bitcoin ETFs,” as noted by Bloomberg Senior ETF analyst Eric Balchunas on social media.
It is worth noting that bitcoin ETFs first surpassed gold ETFs in assets under management back in December 2024, coinciding with a significant surge in the cryptocurrency market fueled by Donald Trump’s victory in the U.S. presidential elections.
Meanwhile, gold’s upward trajectory shows no signs of slowing down, having recently exceeded the $3,000 per ounce mark for the first time in history. This milestone was echoed in the performance of gold futures for April delivery, which also breached this significant threshold earlier in the week.
The rising prices of gold can be attributed to mounting market volatility and geopolitical uncertainty, factors that have historically bolstered demand for safer investment options. As the landscape continues to change, the trend towards gold as a secure asset seems poised to persist.
For further insights on this evolving market dynamic, read more here: Gold’s Historic Rally Leaves Bitcoin Behind, But the Trend May Reverse
