While Bitcoin spot ETFs continue to attract gold, gold ETFs experience significant outflows

Since its listing on January 11, the newly issued Bitcoin spot ETF has attracted a large inflow of funds, reaching billions of dollars. At the same time, gold ETFs experienced massive outflows of funds. The phenomenon is reminiscent of how Bitcoin is sometimes viewed as a modern investment alternative to gold.

In terms of assets under management (AUM), the two major gold ETFs, SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), both experienced net outflows. At the beginning of this year, GLD’s funds under management were $58 billion, compared with IAU’s $26 billion.

According to ETF.com data, from January 11 to February 14, investors withdrew approximately US$2.6 billion from the SPDR Gold Shares (GLD) ETF and lost money from the iShares Gold Trust (IAU) The capital scale reached US$507 million.

There has been a dramatic change in recent inflows into these two funds compared to the same period last year. SPDR Gold Shares attracted $241 million in funding, while iShares Gold Trust attracted $86 million.

However, since the beginning of this year, 11 of the 14 gold ETFs that can be viewed on the ETF.com website have experienced net outflows of funds.

BlackRock’s IBIT and Fidelity’s FBTC are currently the two largest newly issued Bitcoin spot ETFs. The two funds have attracted close to $10 billion since January and are still growing assets under management. If outflows from the GBTC fund are taken into account, the entire Bitcoin spot ETF market has a net inflow of approximately $5 billion.

Eric Balchunas, a senior ETF analyst at Bloomberg, posted on the social platform

# But he later showed an ambiguous attitude, saying that "part of the reason" for the net outflow of gold ETF funds may be because investors turned to Bitcoin ETFs.

However, price performance is of course also one of the factors contributing to related capital flows. The price of gold is down more than 2% so far this year, while Bitcoin is up 23% this year.

Bitcoin is often compared to gold because both are viewed by investors as safe-haven assets that can resist inflation. Since Bitcoin is still a relatively new form of money (compared to gold’s over 5,000-year history), it’s difficult for people outside the cryptocurrency industry to invest in Bitcoin, but after ten issuers launched Bitcoin spot After ETF, the situation has changed.

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