PAXG and XAUT Lead Gold ETF Inflows to Three-Year High, Outperforming the Larger Crypto Market

As traditional gold markets continue to heat up, crypto investors are increasingly turning to gold-backed cryptocurrencies, such as Paxos Gold (PAXG) and Tether Gold (XAUT), which offer both exposure to gold prices and the flexibility of digital assets.

PAXG and XAUT have risen by 24.15% and 23.7%, respectively, this year, reaching new all-time highs above $3,300, closely following the performance of spot gold. However, their prices have since slightly corrected, with PAXG at $3,265 and XAUT at $3,244.

While gold-backed cryptocurrencies have posted strong gains, the broader cryptocurrency market has faced a decline. Bitcoin (BTC) is down more than 11% year-to-date, while the overall market, measured by the CoinDesk 20 (CD20) index, has fallen by over 30%.

The increase in value for gold-backed tokens coincides with growing interest in gold as a safe-haven asset, driven by global uncertainties like the intensifying U.S.-China trade war. Gold ETFs saw inflows of 226.5 tonnes in Q1 2025, marking the highest level since early 2022, with nearly 60% of demand coming from North America, according to the World Gold Council.

In parallel, gold-backed cryptocurrencies minted over $42.7 million in new tokens during the first quarter, pushing their total market capitalization to nearly $1.4 billion and supporting gold’s price growth.