Bitcoin and Gold ETFs Set Record $7 Billion Inflow

Investors pour record capital into Bitcoin and gold ETFs

Bitcoin and gold exchange-traded funds (ETFs) received about $7 billion in just five US trading sessions, setting a new combined record. An ETF is a fund that trades on stock exchanges, allowing investors to buy exposure to assets like Bitcoin or gold without owning the underlying items directly.

The buying surge focused mainly on two major funds. About $3.4 billion went into the SPDR Gold Shares (GLD), while BlackRock’s iShares Bitcoin Trust (IBIT) took in roughly $1.5 billion. These two funds together accounted for about 70% of the combined inflows.

Key figures in the trading surge

• Combined inflows reached approximately $7 billion over five days.
• GLD received $3.4 billion and manages over $150 billion in assets.
• IBIT received $1.5 billion and holds around $60 billion.
• Both Bitcoin and gold prices climbed during this period.
• US public debt stands above $40 trillion.

What triggered the demand for hard assets

The surge in buying comes as investors worry about US debt and currency strength. The US Treasury recently decided to double the size of buybacks for longer-term securities to $4 billion per operation. This move helped push long-term yields lower initially. This environment has revived what analysts call the "debasement trade." Investors are seeking assets with limited supply as protection against persistent government deficits and currency expansion. Matt Hougan, chief investment officer at Bitwise, noted that traditional portfolios are fully exposed to fiat money, driving interest in diversification.

Wall Street sees a long-term trend

Research firm Bernstein suggests the pressure on currencies may persist. The firm argues that the long-term decline in interest rates has ended while sovereign debt hits record levels. Bernstein believes policymakers will favor currency debasement over strict fiscal restraint because it is less politically disruptive. This could strengthen the case for assets like Bitcoin that have a fixed supply. BlackRock also highlighted the role of Bitcoin in portfolios. In research published this month, the asset manager stated that a small allocation to Bitcoin could have improved the risk-adjusted performance of a traditional portfolio.

Is this a permanent shift or a temporary trade?

Gold has a long history as a protection against monetary uncertainty, while Bitcoin has a much shorter track record and higher volatility. Bloomberg Intelligence analyst Eric Balchunas confirmed the five-day total was easily a record for the pair. The key test for Bitcoin will be whether it retains inflows if the dollar strengthens or real yields rise. If demand for Bitcoin ETFs fades while gold remains strong, it would suggest the two assets are benefiting from the same narrative without yet earning the same status in investor portfolios.

Sources

• CryptoSlate