Gold Exchange-Traded Funds (ETFs) Have Overtaken Bitcoin ETFs in Assets Under Management (AUM)

As investors flock to the traditional safe-haven asset, gold exchange-traded funds (ETFs) have overtaken Bitcoin ETFs in assets under management (AUM).

The tables have turned in the world of exchange-traded funds (ETFs) as gold ETFs have now overtaken Bitcoin ETFs in terms of assets under management (AUM), according to the latest report by Farside Investors.

As investors navigate the shifting tides of the market, their interest has shifted back to the traditional safe-haven asset, gold, leading to a reversal of fortune for the digital currency.

Earlier this year, Bitcoin ETFs saw an initial surge in inflows following their launch in the U.S. in January 2024, while gold ETFs experienced outflows as the market focused on the new asset class. However, the tables have turned significantly.

According to the report by the World Gold Council, gold ETFs saw their highest inflows since March 2022, driven by the strong demand for the precious metal.

At the same time, Bitcoin ETFs have faced major outflows, with the report highlighting a total outflow of $3.8 billion from the ETFs since February 24.

The outflows from Bitcoin ETFs can be attributed, in part, to the recent downturn in the cryptocurrency market, which has seen Bitcoin's price drop by over 19% over the past three months.

The shift in investor preference is also evident in the overall AUM figures. While Bitcoin ETFs initially surpassed gold ETFs in AUM following a post-election crypto rally, this trend has reversed, as pointed out by Bloomberg Senior ETF Analyst Eric Balchunas.

In December 2024, Bitcoin ETFs took the lead in AUM for the first time ever, but gold ETFs have since "reclaimed the asset crown."

As for gold, the precious metal continues its momentum, breaking the $3,000 per ounce mark for the first time ever. Futures for April delivery also went above the level on Thursday.

The surge in gold prices is being driven by several factors, including growing geopolitical uncertainty and market volatility, which are reinforcing gold's reputation as a reliable hedge in turbulent times.

With Bitcoin struggling and investors shifting toward stability, the latest data underscores gold's enduring appeal as a safe-haven asset.