Gold ETF Demand Surpasses Bitcoin ETFs Amid Record-Breaking Market Rally

Gold ETFs Outpace Bitcoin ETFs as Precious Metal Soars to Record Highs

Gold exchange-traded funds (ETFs) have overtaken bitcoin ETFs in assets under management as investors pivot toward the stability of precious metals amid Bitcoin’s recent decline.

Over the past three months, Bitcoin has plunged over 19%, while gold has gained 12.5%, drawing renewed interest from investors seeking safe-haven assets.

Bitcoin ETFs, which saw strong inflows after their U.S. launch in early 2024, have faced heavy redemptions, losing roughly $3.8 billion since Feb. 24, according to Farside Investors. Meanwhile, gold ETFs recorded their largest monthly inflows since March 2022, per data from the World Gold Council.

This trend has led gold ETFs to reclaim dominance over their Bitcoin counterparts, as noted by Bloomberg ETF analyst Eric Balchunas.

Bitcoin ETFs first surpassed gold ETFs in assets under management in December 2024 amid a post-election crypto rally. However, shifting market conditions have reversed that dynamic.

Gold’s rally has been fueled by growing geopolitical uncertainty and economic instability, pushing it past $3,000 per ounce for the first time ever. Gold futures for April delivery also breached this level earlier in the week.

As macroeconomic risks mount, investors continue to favor gold as a hedge against uncertainty, reinforcing its reputation as a reliable store of value.