Gold Exchange-Traded Funds (ETFs) in the U.S. have regained their lead in terms of assets under management after briefly being overtaken by Bitcoin (BTC) ETFs. With nearly $150 billion in assets, gold ETFs are demonstrating their strength as a safe-haven asset.
However, Bitcoin ETFs had previously surpassed gold ETFs following a surge in cryptocurrency prices after the U.S. presidential election in December 2024. Yet, Bitcoin has since experienced a significant price decline, trading around $84,000, down approximately 25% from its peak.
Meanwhile, gold prices have hit a record high of $3,014 per ounce, attracting investors seeking more stable investments.
Over the past year, Bitcoin has behaved more like tech stocks and other risk-on assets. Despite having some characteristics of a safe-haven asset, this trend has led to outflows from Bitcoin ETFs.
Kent Thune, Senior Content Editor at Etf.com, noted that gold’s status as an inflation hedge makes it a more attractive choice in the current market conditions.
Although Bitcoin ETFs saw rapid growth after their launch, macroeconomic uncertainty and concerns over President Trump’s policies have triggered massive outflows this year.
Nevertheless, Bloomberg analyst Eric Balchunas believes that interest in Bitcoin could rebound soon, calling it the “hot sauce” of the investment market.
