Despite bitcoin ETF hype, central banks and major investors continue to favor gold for reserves and trade.
Gold is outperforming bitcoin not just in price but in confidence. Since the launch of spot bitcoin ETFs in early 2024, bitcoin has struggled to gain traction, falling roughly 12%, while gold has climbed 58%.
Mark Connors, founder and chief macro strategist at Risk Dimensions and former global head of risk advisory at Credit Suisse, says the reason is simple: bitcoin is still too young. “The buyers that matter — central banks, sovereign wealth funds, large asset allocators — they still prefer gold,” he told CoinDesk.
Gold benefits from centuries of trust, established infrastructure, and ready-made accounts at central banks. Bitcoin, by contrast, remains largely outside these systems. “Some of these institutions haven’t exactly called Unchained and said, ‘Can I get a wallet?’ They just aren’t there yet,” Connors said.
The divergence is also evident among BRICS nations, which are increasing gold holdings and even using it for oil settlement — a role bitcoin has yet to fill. Recent market trends highlight the contrast: bitcoin is down more than 30% from its July peak, while gold trades steadily above $4,100 per ounce.
While bitcoin may gain appeal as trust in fiat currencies erodes, Connors cautions it is not yet a replacement for gold. “Gold’s been around forever. Bitcoin is still growing up,” he said.
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