Gold ETFs Surpass Bitcoin as Investors Seek Safe-Haven Amid BTC Slump

Gold exchange-traded funds (ETFs) have overtaken Bitcoin ETFs in assets under management (AUM) as investors flock to the traditional safe-haven asset. Bitcoin's price has plunged over 19% in the past three months, while gold has surged 12.5%, pushing gold ETFs ahead.

Bitcoin ETFs initially saw strong inflows after launching in the U.S. in January 2024 but have faced major outflows recently. Since Feb. 24, they have lost approximately $3.8 billion, according to Farside Investors. Meanwhile, gold ETFs saw their highest inflows since March 2022, as reported by the World Gold Council.

Bloomberg Senior ETF Analyst Eric Balchunas noted that gold ETFs have “reclaimed the asset crown” over Bitcoin ETFs, reversing the trend seen in December 2024 when Bitcoin ETFs first surpassed gold in AUM following a post-election crypto rally.

Gold’s momentum continues, breaking the $3,000 per ounce mark for the first time ever, with futures for April delivery also exceeding the level. The surge is fueled by growing geopolitical uncertainty and market volatility, 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.