Bitcoin ETFs Attract Over $9 Billion as Gold Funds Face $2.8 Billion Outflows
Recent data indicates a shift in investor preferences, with significant inflows into Bitcoin ETFs and outflows from gold-backed funds.
Bitcoin ETFs Attract $9 Billion
- US Bitcoin ETFs have seen over $9 billion in inflows in five weeks, primarily due to BlackRock Inc.’s iShares Bitcoin Trust ETF (IBIT).
- Gold-backed funds faced outflows exceeding $2.8 billion during the same period.
- This trend follows reduced demand for gold as a safe haven amid easing trade tensions.
- Bitcoin's recognition as an alternative store of value is increasing due to concerns about US fiscal stability.
- Bitcoin reached a record high of $111,980, influenced by favorable regulatory developments and macroeconomic uncertainty.
- Gold remains up 25% this year but is trading approximately $190 below its all-time high.
Bitcoin vs. Gold
- Analysts view the shift towards Bitcoin ETFs as a sign of growing acceptance of Bitcoin as a hedge in investment portfolios.
- Christopher Wood from Jefferies states both assets serve as hedges against currency debasement in G7 countries.
- Concerns remain regarding Bitcoin's volatility, which can undermine its status as a safe haven.
- Geoff Kendrick from Standard Chartered highlights Bitcoin's role in mitigating risks from private sector collapses and government instability.
- Moody’s downgrade of the US credit rating reflects growing fiscal strain, aligning with other agencies like Fitch and S&P Global.
- Year-to-date, gold has gained about 25%, while Bitcoin's rise is around 15%.
