Key Insights

• IBIT has exceeded the SPDR Gold Trust’s inflows despite bitcoin’s stagnant price.
• Robust inflows showcase institutional trust in the long-term potential of bitcoin.

The hike in gold prices, nearly 29% this year, has outperformed bitcoin’s modest 3.8% gain. Nevertheless, investors remain eager to incorporate the leading cryptocurrency into their portfolios.

According to data from Bloomberg’s senior ETF analyst Eric Balchunas, BlackRock’s spot bitcoin ETF (IBIT) has drawn a total of $6.96 billion since the year’s onset, marking it as the sixth-highest inflow amongst all exchange-traded funds. Conversely, SPDR Gold Trust (GLD), recognized as the largest physically-backed gold ETF, has fallen to seventh place with $6.5 billion.

IBIT races past GLD

“To generate more inflows in this environment is a positive signal for the future, reinforcing our projection that BTC ETFs will eventually eclipse gold’s assets under management (AUM) within 3-5 years,” Balchunas stated on X (formerly Twitter).

Gold’s increase is primarily attributed to international trade disputes, rising inflation fears, and geopolitical strain. Although BTC reached an all-time peak in January, it now resides over 10% lower than that mark.