Gold ETFs Overtake Bitcoin ETFs as Precious Metal Hits Record Highs
Surging gold prices and outflows from bitcoin ETFs have propelled gold exchange-traded funds (ETFs) ahead, as investors turn to the traditional safe-haven asset.
Gold ETFs have now surpassed bitcoin ETFs in assets under management, with investors shifting focus amid BTC’s sharp decline. Over the past three months, bitcoin has dropped more than 19%, while gold has surged 12.5%, reinforcing its appeal in volatile markets.
Bitcoin ETFs, which saw substantial inflows following their U.S. debut in January 2024, have faced heavy outflows recently, shedding approximately $3.8 billion since Feb. 24, according to data from Farside Investors. In contrast, gold ETFs recorded their strongest monthly inflows since March 2022, as reported by the World Gold Council.
This shift has led to gold ETFs reclaiming their position over bitcoin ETFs, a development highlighted by Bloomberg Senior ETF Analyst Eric Balchunas.
Bitcoin ETFs originally overtook gold ETFs in assets under management in December 2024, following a surge in crypto markets after Donald Trump’s election victory. However, recent market trends have reversed that dynamic.
Meanwhile, gold continues its remarkable rally, surpassing the $3,000 per ounce mark for the first time ever. Gold futures for April delivery also crossed this milestone earlier in the week.
The combination of market volatility and geopolitical uncertainty has fueled demand for gold, reinforcing its reputation as a safe-haven asset amid global economic uncertainty.
