Will Gold ETFs outstrip Bitcoin ETFs over time?

Gold ETFs vs Bitcoin ETFs:

Gold exchange-traded funds (ETFs) have become more popular than Bitcoin ETFs as investors look for a safer option. Over the past three months, Bitcoin's price has dropped by more than 19%, while gold prices have increased by 12.5%. This shift shows that many investors are moving away from cryptocurrencies and turning to gold, which is often considered a more stable investment.

Bitcoin ETFs saw a lot of interest when they were first introduced in the U.S. in January last year. However, since February 24 of this year, investors have withdrawn around $3.8 billion from these funds. At the same time, gold ETFs have gained a lot of new investments, with March seeing the highest inflows since 2022, according to the World Gold Council.

Read also:

Because of these changes, gold ETFs now have more assets under management than Bitcoin ETFs. Bloomberg's senior ETF analyst Eric Balchunas noted that gold has "reclaimed the asset crown," meaning it is now the preferred investment over Bitcoin ETFs. This marks a major shift in investor behavior, especially after Bitcoin ETFs had previously gained the upper hand.

Bitcoin ETFs had first surpassed gold ETFs in December 2024. At that time, the cryptocurrency market was booming, especially after Donald Trump won the U.S. presidential elections. Many investors believed that Bitcoin would continue to grow, leading to a surge in its popularity. However, recent market trends have reversed this situation.

Gold prices have been rising steadily, reaching a historic milestone. This Friday, gold surpassed $3,000 per ounce for the first time ever. Earlier in the week, gold futures for April delivery also crossed the same level. This increase in gold prices has made it an attractive option for investors looking for stability.

Read also:

One of the key reasons behind gold’s growth is the uncertainty in global markets. Geopolitical tensions and economic instability have led more investors to seek safe-haven assets. Gold has always been seen as a reliable store of value during uncertain times, which has contributed to its rising demand.

Overall, the shift from Bitcoin ETFs to gold ETFs shows that investors are becoming more cautious. While Bitcoin had a strong run in the past, recent price declines have made some investors nervous. Gold, on the other hand, continues to be a trusted investment, especially when financial markets are unpredictable.