Bitcoin ETFs Flourish While Gold Funds Shed Assets
- Bitcoin funds attract billions in new investment while gold funds face outflows.
- IBIT leads with $10.7B of YTD inflows even with the recent price drop.
- GLD records $2.2B in monthly outflows despite the metal's 26% gain.
The iShares Bitcoin Trust (IBIT) is attracting billions in fresh investor capital while gold ETFs face mounting outflows, highlighting a shift in how investors view digital assets versus traditional safe havens.
The divergence reflects changing investor sentiment as Bitcoin ETFs continue to gain popularity despite recent price volatility, while gold funds struggle with outflows even as the metal posts strong year-to-date gains of more than 26%.
IBIT, Bitcoin ETFs Show Strength
IBIT leads the cryptocurrency charge with $10.7 billion in year-to-date inflows, including $5.8 billion over the past month alone, according to FactSet data. The fund has amassed $67.9 billion in assets under management since its launch, making it the largest spot Bitcoin ETF.
Bitcoin currently trades around $106,650, about 4.6% below its May 22 all-time high near $111,970, according to CoinMarketCap data. Despite this recent pullback, IBIT has delivered 16.5% returns year to date with a 0.25% expense ratio.
Among other Bitcoin ETFs showing strength, the Grayscale Bitcoin Mini Trust ETF (BTC) posted $110.1 million in monthly inflows and $549.3 million year to date with $4.6 billion in assets under management, according to FactSet. The fund carries a lower 0.15% expense ratio and delivered similar performance to other Bitcoin ETFs.
The Fidelity Wise Origin Bitcoin Fund (FBTC) also recorded positive flows of $128.8 million year to date and $36 million in the past month, according to FactSet. Fidelity's fund holds $21.3 billion in assets.
Meanwhile, the Grayscale Bitcoin Trust ETF (GBTC) continues hemorrhaging assets with $1.6 billion in year-to-date outflows and $348.6 million leaving in the past month alone, FactSet data show. The fund carries a higher 1.5% expense ratio compared to newer competitors, helping explain the exodus.
IBIT vs. FBTC vs. BTC. vs. GBTC—Source: FactSet
Gold Funds Face Headwinds Despite Metal's Rally
Gold ETFs tell a different story despite the metal posting 26% gains this year. The SPDR Gold Trust (GLD), the world's largest gold ETF with $96.4 billion in assets, recorded $2.2 billion in outflows over the past month while managing $5.1 billion in year-to-date inflows, according to FactSet.
GLD tracks gold spot prices and charges a 0.4% expense ratio. Gold recently touched a more than one-week low after a U.S. federal court blocked President Donald Trump's tariffs, reducing the metal's safe-haven appeal, according to Reuters.
BlackRock's iShares Gold Trust (IAU) shows similar patterns with $131.7 million in monthly outflows despite $4.1 billion in year-to-date inflows, FactSet data indicate. This fund's lower 0.25% expense ratio and $45.6 billion in assets make it a popular alternative to GLD.
Gold-mining ETFs face even steeper outflows. The VanEck Junior Gold Miners ETF (GDXJ) shed $329.8 million last month and $1.2 billion year to date despite posting 47.8% returns, according to FactSet. The VanEck Gold Miners ETF (GDX) saw $114.3 million in monthly inflows but $2.8 billion in year-to-date outflows despite similar gains.
GDX vs. GLD vs. GDXJ vs. IAU—Source: FactSet
