Gold ETFs Surpass Bitcoin ETFs as Investors Seek Safe Haven
1min read Gold exchange-traded funds (ETFs) have surpassed bitcoin ETFs in assets under management as investors increasingly favor the traditional safe-haven asset. This shift comes as the price of bitcoin tumbled more than 19% over the past three months, while gold climbed 12.5%.
Bitcoin ETFs, which initially saw significant inflows following their U.S. launch in January last year, have experienced major outflows, losing about $3.8 billion since late February of this year. In contrast, gold ETFs recorded their highest monthly inflows since March 2022 last month. This trend has led to gold ETFs reclaiming the asset crown over bitcoin ETFs.
Spot bitcoin ETFs listed in the U.S. first surpassed gold ETFs in assets under management in December 2024 as the cryptocurrency market surged. However, the recent market volatility and geopolitical uncertainty have driven demand for gold, pushing its price to a record high of $3,004.86 per ounce. This historic rally has been fueled by safe-haven demand and expectations of further market turbulence.
The shift in investor sentiment is evident in the performance of U.S. spot gold ETFs, which have attracted significant inflows exceeding $6 billion year-to-date. Globally, spot gold ETFs have seen over $23 billion in inflows, highlighting the widespread appeal of gold as a safe-haven asset. In contrast, U.S. spot Bitcoin ETFs have experienced only three days of inflows since mid-February, causing total net inflows to decline from $40 billion. This divergence underscores the growing preference for gold over Bitcoin in the current market environment.
The trend is expected to continue, with gold tipped to gain over 15% by 2025, driven by ongoing market volatility and geopolitical risks. The historic rally in gold has been driven by a combination of factors, including safe-haven demand, expectations of further market turbulence, and geopolitical risks. The yellow metal's price has surged to a record high of $3,004.86 per ounce, marking a 14% gain. This price movement has coincided with a shift in investor preferences, as gold ETFs have seen inflows of over $6.48 billion year-to-date, while Bitcoin ETFs have lost $1.46 billion in the same period.
Ask Aime: Why are gold ETFs now preferred over bitcoin ETFs by investors?
