Gold-Backed Cryptocurrencies Surge as Gold ETFs Experience Historic Inflows
Gold's value has soared nearly 11% in 2025 alone, with significant inflows into gold-backed exchange-traded funds (ETFs).
What You Need To Know:
- Gold ETFs just recorded their highest weekly inflow since March 2022, totaling 52.4 tons, equating to about $4.9 billion.
- The price of gold has surged approximately 11% year-to-date and over 43% within the last twelve months due to geopolitical tensions and tariff uncertainties.
- Notable cryptocurrencies benefiting from this trend include PAXG and XAUT.
While spot bitcoin exchange-traded funds have faced record outflows nearing $1 billion, gold ETFs continue to see substantial inflows, signifying a favorable outlook for gold-backed cryptocurrencies. The latest data from the World Gold Council confirms significant demand, particularly from North America.
In total, gold ETF holdings have reached 3,326 tons, roughly translating to around $314 billion. As geopolitical conditions persist and market demands fluctuate, the resilience of gold suggests a continuing upward trajectory, especially for gold-backed tokens. Paxos gold (PAXG) and Tether gold (XAUT) have notably outperformed the broader cryptocurrency market, which has risen 26% year-over-year according to the CoinDesk 20 Index.
The demand for these commodities is accelerating, with $25 million worth of commodity-backed tokens minted just this month, marking the largest monthly volume since December 2022.
