‘Debaser Trade’ Heats Up as Bitcoin and Gold ETFs Draw Record Volume
Investor appetite for assets immune to government debasement is driving strong performance in Bitcoin and precious metals.
The debasement trade, also known as the sound money or hard asset trade, is in full swing. Bitcoin (BTC) has risen above $120,000, nearing its all-time high of $124,000, while gold has gained nearly 50% year-to-date, trading just under $3,900 and hitting record levels almost daily.
Exchange-traded fund activity underscores the momentum behind this trend. On Thursday, BlackRock’s iShares Trust (IBIT) and the SPDR Gold ETF (GLD) ranked among the top 10 most traded ETFs, a rare occurrence, according to Bloomberg Senior ETF analyst Eric Balchunas. GLD recorded $4.88 billion in volume, ranking fourth, while IBIT posted $3.21 billion, ranking seventh. The SPDR S&P 500 ETF (SPY) led total volume with over $26 billion.
“Everyone wants in on the debaser trade, I guess,” Balchunas commented.
Comedian and sound-money advocate Dominic Frisby told CoinDesk that Bitcoin and gold share a key characteristic: they cannot be printed by governments.
Frisby said: “Bitcoin is close to all-time highs. Gold is at record levels. Silver is approaching its peaks. Faith in fiat seems to be waning. Assets that are resistant to government debasement are taking center stage.”
Silver has mirrored gold’s rally, trading just below $48, its third-highest level behind peaks in 1980 and 2011. In both prior cases, silver’s top coincided with gold’s. If history repeats, silver’s parabolic run could signal a gold peak, potentially setting the stage for further upside in Bitcoin.
