The outflow of funds from ETFs for gold exceeded $2 billion: will this affect the price of bitcoin
Since the beginning of 2024, the outflow of funds from the ETF has exceeded $2 billion, $423.6 million of this amount was accounted for by the iShares Gold Trust ETF from BlackRock. Analysts warn that this does not necessarily indicate a transition from gold to BTC.
The outflow of funds from exchange-traded funds (ETFs) for gold this year exceeded $ 2 billion. Ironically, the iShares Gold Trust ETF from BlackRock took second place with an indicator of $ 423.6 million, although on February 14, the inflow of funds into the spot bitcoin ETF reached $ 5 billion since its launch.
Since the beginning of 2024, investors have also been actively getting rid of the Abrdn's Physical Gold Shares and Precious Metal Basket Gold Shares ETFs. The outflow of funds from these instruments amounted to $41.1 million and $22 million, respectively.
However, what is happening does not necessarily mean that investors are leaving gold for bitcoin, warns Bloomberg analyst Eric Balchunas. Rather, it indicates that FOMO is developing against the background of the release of inflation data in the United States.
Gold ETFs offer investors access to the precious metal without the need for physical ownership of the asset. The first SPDR Gold Shares ETF was listed on the New York Stock Exchange in 2004. At the time of writing, the spot price of gold is being tracked by at least 19 other American ETFs.
While gold ETFs are not showing the most impressive dynamics, the inflow of funds into spot bitcoin ETFs in the last few days alone amounted to $2.3 billion. Since the launch, funds for the main cryptocurrency, with the exception of the Grayscale trust, have raised about $11.6 billion.
Being a relatively non-volatile commodity compared to BTC, gold is often seen as a store of value rather than a means of making short-term profits. Well-known bitcoin critic Peter Schiff once ridiculed "hodlers" who hope for an increase in the price of the asset. And SEC Commissioner Caroline A. Crenshaw, who voted against approving spot bitcoin ETFs, said that traditional financial companies that own BTC do not follow the traditional logic of investing.
