Bitcoin ETF products are facing sustained outflows, while Gold ETF is gaining traction following the massive rally in the price of the precious metal.
The slowdown in Bitcoin price gain may have caused BTC Exchange-Traded Funds (ETFs) to lag behind their gold counterparts. This follows a shift in sentiment between both assets which represents a true hedge against inflation.
Why Gold ETFs are Outperforming Bitcoin ETFs
Market observers have noticed a peculiar shift towards the traditional haven asset amidst Bitcoin price struggles.
In under three months, the flagship cryptocurrency has lost more than 19% of its market value, while gold has gained 12.5% within the same period. At the time of this writing, BTC traded at $84,409.01.
The Empire Strikes Back: Gold ETFs have reclaimed the asset crown over bitcoin ETFs thanks to 12% gain this year. https://t.co/ls67z5sIs5
— Eric Balchunas (@EricBalchunas) March 14, 2025
While this price level corresponds with a 3.05% increase in the last 24 hours, it represents a 7-day decline of 1.87% and a 30-day loss of 11.5%.
While the Bitcoin valuation is tanking, gold is recording new price gains. The precious metal is trading for $2,986, up 0.37% in 24 hours. It is on this premise that Gold ETFs have outperformed their Bitcoin rivals.
Despite Bitcoin’s price correction, which started at the beginning of this year, most spot Bitcoin ETF holders still strongly hold on to their holdings.
According to Bloomberg’s ETF strategist James Seyffart, BTC ETF inflows have registered a slight decline from their peak of $40 billion to $35 billion. This shows that more than 95% of investors are still holding on.
Key institutional players like Goldman Sachs still have over $1.5 billion exposure to Bitcoin ETFs.
More Crypto ETFs on the Horizon
Investors will likely have more crypto ETFs to invest in the future, especially with the growing number of applications that asset managers submit to the United States Securities and Exchange Commission (SEC). Recently, VanEck submitted an S-1 filing with the US SEC for an Avalanche (AVAX) ETF to provide direct exposure to the smart contract platform.
Similarly, Franklin Templeton, BlackRock, and Fidelity have all submitted their applications for XRP ETFs with the Commission.
There are also filings for Solana, Litecoin, and Dogecoin ETFs. The SEC has delayed several reviews, but these asset managers remain unrelenting in pursuing these funds. The availability of a more favorable regulatory framework gives them confidence that the filings will return with approvals.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
