Top 10 ETF Volume Shows ‘Debaser Trade’ in Action with Bitcoin and Gold

‘Debaser Trade’ Gains Momentum as Bitcoin and Gold ETFs See Heavy Flows

Investor demand for assets resistant to government debasement is fueling strong gains across Bitcoin and precious metals.

The debasement trade, also called the sound money or hard asset trade, continues to attract attention. Bitcoin (BTC) has surpassed $120,000, approaching its all-time high of $124,000, while gold has surged nearly 50% year-to-date, trading just below $3,900 and hitting record highs almost daily.

ETF flows highlight the enthusiasm behind this trend. On Thursday, BlackRock’s iShares Trust (IBIT) and the SPDR Gold ETF (GLD) ranked among the top 10 most traded ETFs, a rare occurrence, according to Bloomberg Senior ETF analyst Eric Balchunas. GLD recorded $4.88 billion in volume, ranking fourth, while IBIT posted $3.21 billion, placing seventh. The SPDR S&P 500 ETF (SPY) led total volume with over $26 billion.

“Everyone wants in on the debaser trade, I guess,” Balchunas noted.

Comedian and sound-money advocate Dominic Frisby told CoinDesk that Bitcoin and gold share a fundamental trait: they cannot be printed by governments.

Frisby said: “Bitcoin is near all-time highs. Gold is at record levels. Silver is approaching its peaks. Faith in fiat appears to be weakening. Assets immune to government debasement are taking center stage.”

Silver has mirrored gold’s rally, trading just below $48, its third-highest level behind peaks in 1980 and 2011. In both prior cases, silver’s top coincided with gold’s. If history repeats, silver’s parabolic run could foreshadow a gold peak, potentially opening the door for further upside in Bitcoin.