Gold ETFs have once again gained superiority over Bitcoin ETFs. The sharp drop in Bitcoin prices and significant outflows from funds have directed investors towards gold, resulting in gold ETFs recording the largest inflows in recent years. The precious metal broke records by surpassing the $3,000 level with a historic rally. The sharp rise in gold prices and exits from Bitcoin ETFs have steered investor interest towards precious metals. Over the past three months, Bitcoin prices have fallen by 19% while gold has gained 12.5% in value. This shift has led gold exchange-traded funds (ETFs) to surpass Bitcoin ETFs in managed assets.

RECORD INFLOWS TO GOLD ETFs
Bitcoin ETFs, which attracted significant attention since being introduced to the US market in January of last year, are facing substantial outflows as of 2024. According to Farside Investors data, there has been a total outflow of $3.8 billion from Bitcoin ETFs since February 24. During the same period, gold ETFs have seen the highest monthly inflows since March 2022, as reported by the World Gold Council. Bloomberg Senior ETF analyst Eric Balchunas stated through social media that these flows indicate that gold ETFs have “regained asset momentum against Bitcoin ETFs.” According to Balchunas, investors are turning to gold, a traditional safe haven, amid market uncertainties and global economic risks.

BITCOIN LOSES ITS LEAD
Listed spot Bitcoin ETFs in the US made a significant leap in assets under management compared to gold ETFs after the market boom following Donald Trump’s presidential election victory in December 2024. However, recent volatility and investors’ tendency to avoid risks have accelerated the outflows from Bitcoin ETFs.

SURPASSING THE $3,000 LEVEL FOR THE FIRST TIME
The rise of gold is not limited to the ETF market. The precious metal broke a historic record by surpassing the $3,000 per ounce level for the first time this week. Gold futures for April delivery also crossed the $3,000 level earlier this week. This trend indicates that investors continue to turn to gold as a safe haven amid increasing global uncertainties.