While Bitcoin dominated headlines last year with its meteoric rise, gold ETFs have quietly reclaimed their throne in 2024. The yellow metal is back on top. Gold ETFs have seen their highest monthly inflows since March 2022, with U.S. spot gold ETFs attracting over $6 billion year-to-date and global spot gold ETFs raking in more than $23 billion. That’s serious cash flowing into an asset many crypto enthusiasts dismissed as a relic.
Bitcoin ETFs, meanwhile, are having a rough time. Since February 24, they’ve hemorrhaged approximately $3.8 billion, with only three pathetic days of positive inflows since mid-February. Total net inflows have declined from a once-impressive $40 billion. Ouch. Bitcoin ETFs are now managing just over $93 billion in assets, while gold ETFs are sitting pretty with nearly $150 billion.
Bitcoin ETFs struggle with massive outflows while gold ETFs dominate the investment landscape with superior stability and far greater assets.
The numbers tell the whole story. Gold prices reached a record high of $3,004.86 per ounce, while Bitcoin tumbled more than 19% over the past three months. During that same period, gold climbed 12.5%. Bitcoin dropped from its all-time high of $109,000 to around $84,000. Not exactly the “digital gold” performance its champions promised.
Investors are clearly shifting toward traditional safe-haven assets amid market volatility. Gold’s appeal as an inflation hedge and safe-haven investment is growing, while Bitcoin is behaving more like a tech stock than a stable store of value. Turns out people like stability when markets get shaky. Who knew?
Regulatory certainty doesn’t hurt either. Gold exists in a well-established regulatory framework, while Bitcoin’s regulatory landscape is still a confusing mess globally. This dramatic shift represents a complete reversal from December 2024 when Bitcoin ETFs first surpassed gold ETFs in total assets. Governments can’t decide how to tax or regulate digital assets, and that uncertainty is scaring off the big money. Geopolitical uncertainty has further reinforced gold’s appeal as a reliable hedge against instability.
Looking ahead, gold is tipped to gain over 15% by 2025. Bitcoin still has potential as a digital store of value, especially with increasing institutional adoption. The cryptocurrency’s price volatility issues make it a riskier investment for those seeking stability in uncertain economic times. But for now, the king of metals is showing the upstart cryptocurrency who’s boss. The more things change, the more they stay the same.
