Bitcoin Shines As Gold ETFs Bleed Billions In 2024

Gold-tracking exchange-traded funds (ETFs) lost billions in outflows this year. In stark contrast, Bitcoin ETFs tracking the spot price surged. The leading 14 gold ETFs saw outflows of $2.4 billion in 2024, said Bloomberg intelligence analyst Eric Balchunas on Feb. 14. Only three had minor inflows, including VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF, and Proshares UltraShort Gold.

The largest outflows came from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust, losing $230.4 million and $423.6 million, respectively. Conversely, the ten approved spot BTC ETFs saw aggregate inflows of $3.89 billion this year, as per preliminary data from Farside.

They also hit record volumes. “Not only is Bitcoin sucking up funds, but gold is haemorrhaging assets at an alarming rate across many ETFs,” commented portfolio manager “Bitcoin Munger.” Balchunas, however, commented that he didn’t think gold ETF investors were necessarily mass migrating to Bitcoin ETFs, “but rather just US equity FOMO.”

Bitcoin Surges, Gold Stumbles: ETF Divergence Widens In 2024

Bitcoin pioneer Jameson Lopp meanwhile shared a chart comparing the two ETFs. He asked about the well-being of gold investor and BTC detractor Peter Schiff. The divergence between gold and Bitcoin ETFs has been exacerbated by falling gold prices in 2024. The commodity has lost 3.4% since the beginning of the year, falling to a two-month low of $1,993 per ounce on Feb. 14.

Meanwhile, Bitcoin’s price is $ 52,022, with a 24-hour trading volume of $ 47.70B and a market cap of $ 1.02 T. The BTC price increased 5.05% in the last 24 hours.

Source: CoinMarketCap

In a report earlier this month, the World Gold Council said global gold ETF outflows and a “reduction in speculative positioning” were major contributors to gold’s lacklustre performance. The council added, “Long-term Treasuries and the US dollar, on the back of strong upside US economic surprises, were also headwinds.” It cited these factors as reasons for gold’s poor performance.

In Jan, Bloomberg senior commodity strategist Mike McGlone predicted gold would outperform Bitcoin in 2024. But he appears to be off the mark so far. People often compare both assets because they share store-of-value properties. Additionally, investors often view them as go-to investments during economic and geopolitical turmoil. However, the current data shows Bitcoin ETFs are gaining favour while gold ETFs are losing billions.

Related Reading | Bitcoin Outflows From Coinbase Surge, Possible Bullish Signal

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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