Gold ETFs Face Bleak Outflows, While Bitcoin ETFs Shine with Inflows

Gold ETF Struggles
Bitcoin ETFs Gain Momentum
Market Commentary
Global Gold ETF Outlook

Gold-tracking exchange-traded funds (ETFs) find themselves in a challenging situation this year, witnessing substantial outflows totaling $2.4 billion, according to Bloomberg intelligence analyst Eric Balchunas. In stark contrast, Bitcoin ETFs have experienced a surge in popularity, accumulating aggregate inflows of $3.89 billion in 2024, as reported by preliminary data from Farside.

Gold ETF Struggles

Out of the 14 leading gold ETFs, only three managed minor inflows this year, including VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF, and Proshares UltraShort Gold. Notably, BlackRock's iShares Gold Trust Micro and iShares Gold Trust saw the largest outflows, losing $230.4 million and $423.6 million, respectively. The outflows are accentuated by a 3.4% decline in gold prices since the beginning of the year, reaching a two-month low of $1,993 per ounce on Feb. 14.

Bitcoin ETFs Gain Momentum

Conversely, Bitcoin ETFs have garnered increased attention and investments, with ten approved spot Bitcoin ETFs witnessing robust inflows. This divergence in fortunes is highlighted by Bitcoin's price surge of 23.5% in 2024, reaching a two-year high of $52,483 on Feb. 14.

Market Commentary

Portfolio manager "Bitcoin Munger" remarked on the significant shift, noting that not only is Bitcoin attracting funds, but gold is experiencing substantial asset under management (AUM) losses. However, Balchunas suggested that the move might be driven by a fear of missing out (FOMO) in the U.S. equity market rather than a direct mass migration from gold ETFs to Bitcoin ETFs.

Global Gold ETF Outlook

Earlier this month, the World Gold Council highlighted global gold ETF outflows and a reduction in speculative positioning as contributing factors to gold's lackluster performance. This comes contrary to the prediction by Bloomberg senior commodity strategist Mike McGlone, who anticipated gold outperforming Bitcoin in 2024.

The contrasting fate of gold and Bitcoin in the ETF landscape adds an intriguing dimension to the ongoing debate about their roles as store-of-value assets amid economic uncertainties.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Bitcoin ETF gold etf

Gold ETFs Face Bleak Outflows, While Bitcoin ETFs Shine with Inflows

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.