Bitcoin ETFs Surpass Gold ETFs in Investor Inflows

TLDR

• Bitcoin ETFs attracted $9 billion in inflows by May 2025.
• Gold ETFs experienced $2.8 billion in outflows during the same period.
• Bitcoin reached an all-time high of $111,980 recently.

Recent market data reveal a notable shift in investor behavior from gold ETFs to Bitcoin ETFs. As of May 2025, Bitcoin ETFs have drawn approximately $9 billion in inflows, while gold ETFs faced outflows of about $2.8 billion during the same timeframe.

This trend indicates a growing interest in digital assets as potential safe havens. BlackRock’s iShares Bitcoin Trust (IBIT) has been at the forefront of this movement, securing $10.7 billion in year-to-date investments and currently managing around $59 billion in total assets.

Bitcoin ETF Inflows Overtake Gold ETFs in May

The Grayscale Bitcoin Trust (GBTC) has also seen increased activity. On May 24, 2025, its trading volumes reached a 30-day high of $980 million. Together with other newly approved spot Bitcoin ETFs, these funds have collectively garnered over $1.2 billion in net inflows towards the end of May.

In contrast, traditional gold-backed funds like SPDR Gold Shares (GLD), which manages approximately $102 billion in assets, have experienced consistent outflows even though gold prices have risen by 29% year-to-date, compared to Bitcoin’s 4% increase within the same period.

Market Factors Influencing Investor Decisions

The shift towards Bitcoin ETFs appears to be influenced by several market factors. Easing trade tensions have lessened the demand for traditional safe havens such as gold, while Bitcoin is gaining recognition as an alternative store of value amidst worries about US fiscal stability.

Additionally, positive regulatory developments for cryptocurrency markets and rising macroeconomic uncertainty are further spurring investor interest in digital assets.

Gold and Bitcoin as Hedges Against Currency Debasement

Christopher Wood, a global equity strategist at Jefferies, has expressed optimism regarding both gold and Bitcoin. He highlighted their effectiveness as hedges against currency debasement in G7 nations.

Regarding price action, Bitcoin recently reached an all-time high of $111,980. Although gold has retreated slightly from its peaks, it continues to trade significantly above its start-of-year value, despite being approximately $190 below its all-time high.