Gold

Bitcoin

Gold-tracking exchange-traded funds (ETFs) have lost billions in outflows in 2024, in contrast to ETFs tracking the spot price of Bitcoin.
The 14 leading gold ETFs have seen outflows of $2.4 billion so far in 2024, <a href="https://twitter.com/EricBalchunas/status/1757767035134660987" target="_blank" rel="noopener nofollow">according</a> to an X post from Bloomberg intelligence analyst Eric Balchunas&nbsp;on Feb. 14.
<blockquote class="twitter-tweet">
 Meanwhile it’s a pretty bad scene right now in the gold ETFs category… via <a href="https://twitter.com/SirYappityyapp?ref_src=twsrc%5Etfw">@SirYappityyapp</a> in our just published weekly flow note <a href="https://t.co/C0T17JZpiA">pic.twitter.com/C0T17JZpiA</a>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1757767035134660987?ref_src=twsrc%5Etfw">February 14, 2024</a>
</blockquote> 
Only three had seen minor inflows in 2024: VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF and Proshares UltraShort Gold. The most significant outflows came from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust, with $230.4 million and $423.6 million exiting, respectively.
On the other hand, the 10 approved spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;ETFs have <a href="https://cointelegraph.com/news/bitcoin-etfs-scoop-10-x-more-btc-than-mined">seen aggregate inflows</a> of $3.89 billion and record volume since their launch on Jan. 11, <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener nofollow">according</a> to preliminary data from Farside.
“Not only is Bitcoin sucking up funds, but gold is hemorrhaging AUM at an alarming rate across many ETFs,” <a href="https://twitter.com/bitcoinmunger/status/1757814414525231449" target="_blank" rel="noopener nofollow">commented</a> portfolio manager Bitcoin Munger.
Balchunas, however, commented that he didn’t think gold ETF investors were necessarily mass migrating to Bitcoin ETFs, “but rather just US equity FOMO.” 
Bitcoin pioneer Jameson Lopp&nbsp;<a href="https://twitter.com/lopp/status/1757839965407621414" target="_blank" rel="noopener nofollow">shared</a> a chart comparing the two ETFs, asking about the well-being of gold investor and Bitcoin detractor Peter Schiff.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/d075c8f7-8d0d-4856-a8e8-5c47b807fdbf.jpg" alt="" title="">
 <figcaption style="text-align: center;">
 ETF aggregate flows since spot BTC ETF launch. Source X/Jameson Lopp
 </figcaption>
</figure>
The divergence has been <a href="https://cointelegraph.com/news/bitcoin-41k-gold-price-new-all-time-high">exacerbated by falling gold prices</a><a href="https://cointelegraph.com/news/bitcoin-41k-gold-price-new-all-time-high"></a> in 2024. The commodity has lost 3.4% since the beginning of the year, falling to a two-month low of $1,993 per ounce on Feb. 14. 
Meanwhile, Bitcoin prices have increased 23.5% over the same period, with the asset hitting a two-year high of $52,483 on Feb. 14. 
Related: <a href="https://cointelegraph.com/news/substitution-gold-for-bitcoin-now-underway-cathie-wood">‘Substitution’ of gold for Bitcoin is now underway, says Cathie Wood</a>
In a <a href="https://www.gold.org/goldhub/research/gold-market-commentary-january-2024" target="_blank" rel="noopener nofollow">report</a> earlier in February, the World Gold Council said that global gold ETF outflows and a “reduction in speculative positioning” were major contributors to gold’s lackluster performance, adding: 
<blockquote data-ct-non-breakable="true">
 “Long-term Treasuries and the US dollar, on the back of strong upside US economic surprises, were also headwinds.” 
</blockquote>
In January, Bloomberg senior commodity strategist Mike McGlone predicted that <a href="https://cointelegraph.com/news/gold-outperform-bitcoin-2024-bloomberg-analyst-predicts">gold would outperform Bitcoin</a> in 2024, but he appears to be a little off the mark at the moment. 
Bitcoin and gold have often been compared for their shared store of value properties and their choice as go-to investments during times of economic and geopolitical turmoil. 
Magazine: <a href="https://cointelegraph.com/magazine/crypto-inevitable-all-in-meet-vance-spencer/">‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull</a>

Gold ETFs bleed $2.4B so far in 2024 as Bitcoin ETFs hit record volumes

Cointelegraph

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