Gold ETFs have once again gained superiority over Bitcoin ETFs. The sharp drop in Bitcoin prices and significant fund outflows have guided investors towards gold, resulting in the gold ETFs recording the largest inflows in recent years. The precious metal surpassed $3,000 with a historic rally, breaking records. The strong rise in gold prices and exits from Bitcoin ETFs have redirected investor interest towards precious metals. In the last three months, while Bitcoin prices fell by 19%, gold gained 12.5% in value. This has led the gold exchange-traded funds (ETFs) to outperform Bitcoin ETFs in terms of managed assets.

RECORD ENTRIES FOR GOLD ETFs
Bitcoin ETFs, which have seen significant interest since their launch in the US last January, are facing serious outflows by 2024. Data from Farside Investors shows a total outflow of $3.8 billion from Bitcoin ETFs since February 24. During the same period, gold ETFs recorded the highest monthly inflows since March 2022, according to the World Gold Council.

Senior ETF analyst at Bloomberg, Eric Balchunas, highlighted through his social media evaluation that these flows indicate gold ETFs “reclaiming the asset tug-of-war against Bitcoin ETFs.” According to Balchunas, investors are turning to gold, a traditional safe haven, amidst market uncertainties and global economic risks.

BITCOIN LOST ITS LEADERSHIP
Listed spot Bitcoin ETFs in the US experienced a significant surge after the 2024 presidential elections were won by Donald Trump, surpassing gold ETFs in terms of assets under management due to the revival in the crypto market. However, recent volatility and investors’ tendency to avoid risks have accelerated the outflows from Bitcoin ETFs.

SURPASSED THE $3,000 LEVEL FOR THE FIRST TIME
The rise in gold is not limited to the ETF market alone. This week, the precious metal surpassed the $3,000 per ounce level for the first time, setting a historic record. Gold futures for April delivery also exceeded the $3,000 level earlier this week, indicating that investors continue to turn to gold as a safe haven amid increasing global uncertainties.