The price of gold has surged almost 29% this year, solidly beating the 3.8% gain in bitcoin (BTC). Even so, that hasn’t deterred investors eager to add the largest cryptocurrency to their portfolios.
BlackRock’s spot bitcoin ETF (IBIT) has attracted a net $6.96 billion in inflows since the start of the year, ranking as the sixth-largest amount of all exchange-traded funds, according to data from Bloomberg’s senior ETF analyst, Eric Balchunas. In contrast, SPDR Gold Trust (GLD), the world’s largest physically backed gold ETF, has seen net inflows of $6.5 billion, dropping it to the seventh position as of Monday.
IBIT’s outperformance suggests a persistent confidence among institutions in bitcoin’s long-term prospects despite its relatively lackluster price performance. Gold’s increase of $3,384 is largely attributed to ongoing international trade disputes, renewed inflation concerns, and rising geopolitical tensions. While BTC, often referred to as digital gold, reached a record high in January, it currently stands more than 10% below that peak.
According to Balchunas, “To take in more cash in that scenario is a really good sign for the long term, and inspires confidence in our call that BTC ETFs will have triple gold’s AUM in 3-5 years.” This statement encapsulates the growing optimism around bitcoin as it continues to carve out a significant role in the investment landscape.
