Bitcoin ETFs See $9 Billion Inflows Amid Escalating Shift Away From Gold
Bitcoin exchange-traded funds (ETFs) have seen over $9 billion in inflows in the past five weeks, largely due to BlackRock’s iShares Bitcoin Trust ETF, while gold-backed funds experienced outflows exceeding $2.8 billion. This shift reflects a decline in demand for gold as a safe haven amid easing trade tensions and increasing recognition of Bitcoin as a viable alternative store of value due to concerns about US fiscal stability. Bitcoin reached a record high of $111,980, supported by favorable regulatory developments and macroeconomic uncertainty. Analysts suggest this trend indicates growing acceptance of Bitcoin as a hedge against currency debasement, despite concerns over its volatility. Bitcoin is viewed as a hedge against both private sector risks and government-related issues, particularly in light of threats to Federal Reserve independence and US policy credibility. Moody’s downgrade of the US credit rating has intensified discussions around these assets. Year-to-date, gold has gained about 25%, outperforming Bitcoin's rise of approximately 15%.
