Market Cap: $2.7638T -4.450%
Volume(24h): $137.6882B -35.480%
  • Market Cap: $2.7638T -4.450%
  • Volume(24h): $137.6882B -35.480%
  • Fear & Greed Index:
  • Market Cap: $2.7638T -4.450%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top News
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
bitcoin
bitcoin

$88830.798037 USD

-2.64%

ethereum
ethereum

$2497.873910 USD

1.23%

tether
tether

$0.999258 USD

-0.08%

xrp
xrp

$2.298080 USD

2.28%

bnb
bnb

$622.330777 USD

3.09%

solana
solana

$142.049991 USD

2.75%

usd-coin
usd-coin

$1.000028 USD

0.01%

dogecoin
dogecoin

$0.211388 USD

1.36%

cardano
cardano

$0.685163 USD

1.78%

tron
tron

$0.229024 USD

-1.71%

chainlink
chainlink

$15.356018 USD

3.94%

sui
sui

$3.026185 USD

10.03%

avalanche
avalanche

$22.223067 USD

3.59%

stellar
stellar

$0.293999 USD

0.98%

litecoin
litecoin

$119.168857 USD

6.68%

Cryptocurrency News Articles

Gold ETFs Are Rapidly Gaining Traction as Investors Seek Diversification into Alternative Investments

Feb 27, 2025 at 12:08 am

Bitcoin daily outflows have significantly declined as investors seek to diversify into alternative investments, with gold ETFs rapidly gaining traction.

Gold ETFs Are Rapidly Gaining Traction as Investors Seek Diversification into Alternative Investments

Gold ETFs are rapidly gaining traction as investors seek diversification into alternative investments, signaled by a significant decline in Bitcoin daily outflows and the apex of Bitcoin ETFs at nearly $1 billion daily over the past few days.

While the cryptocurrency market experiences outflows, signaled by a substantial decrease in Bitcoin daily outflows and the peak of Bitcoin ETFs at nearly $1 billion daily over the past few days, gold ETFs continue to show strong demand and outperform the broader crypto market.

The value of gold ETFs has surged to $314 billion globally, with tracked supply increasing by approximately 1% year-over-year, according to Rockville,. Despite some brief declines in gold prices over the past few days, gold remains a prominent asset class among investors, fueled by its defensive appeal and growing appreciation potential.

Among the standout performers are -backed gold ETFs, which have outperformed broader gold-backed ETFs. This performance could provide halo benefits for coin platforms tracking gold, such as Paxos gold (PAXG) and Tether gold (XAUT), which have seen their values rise by 26% year-over-year.

However, despite this performance, gold-backed cryptocurrencies have faced challenges in recent months, leading investors to consider the pros and cons of such offerings.

Paxos gold and Tether gold are designed to track the price of gold, but they are not backed by the metal. This lack of backing could be a concern for some investors, particularly in light of the recent volatility in the cryptocurrency market.

On the other hand, these ETFs offer several advantages over traditional gold investments. They are highly liquid and can be bought and sold easily on cryptocurrency exchanges. Additionally, they are available 24/7, providing investors with greater flexibility.

Moreover, these ETFs are denominated in U.S. dollars, offering a hedge against inflation and currency devaluation. With the domineering nature of the U.S. dollar in the global financial system, an 11% historical yield is paintable on the coin platforms.

In a year, including currency, gold rose by just shy of 11% to $2,910 per ounce. Analysts permit this upward trend to be attributed to several factors, such as geopolitical tensions and uncertainties surrounding potential Trump tariffs.

"There's certainly a broad-based rise in demand for gold across all asset classes," bleak signaled in a recent email. He highlighted that interest in gold is evident in the performance of gold ETFs and the growing number of gold-related products being launched by financial institutions.

"We're seeing a defensive strategy emerging with a mix of both backed and unbacked offerings contributing to sustained growth in the ETFs space," Rockville signaled. "This is sustaining the broader market stability."

Overall, the outlook for gold ETFs remains promising. With a mix of both backed and unbacked offerings ensuring steady supply growth and broader market stability, these ETFs are well-positioned to continue performing well in the year ahead.

The rise of gold ETFs as a hedge or investment asset has been a key driver of positive trends in the cryptocurrency market, particularly through platforms like PAXG and XAUT. As these ETFs strike a balance between financial comfort and speculative , they are positioning investors in a stable but continuously evolving frontier.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Feb 27, 2025