ETF Investors Pile Into Gold, Silver & Bitcoin
Inflows for gold, silver and bitcoin ETFs have been picking up steam.
After sitting out the precious metal rally for much of this year, ETF investors have been piling into gold and silver funds recently.
Over the past month, $3.5 billion has flowed into precious metals exchange-traded funds, accounting for most of the category’s year-to-date inflows of $3.9 billion.
Gold has been hitting a continuous stream of record highs all year long, with prices briefly eclipsing $2,750/oz on Wednesday. Meanwhile, silver recently jumped to a 12-year high close to $35/oz.
The SPDR Gold Trust (GLD) is up 31% since the start of the year, while the iShares Silver Trust (SLV) is up 41%.
The rally in precious metals seems to be picking up steam ahead of the U.S. presidential election next month.
ETF Investors Buying Up Gold and Silver
Billionaire hedge fund manager Paul Tudor Jones told CNBC earlier this week that no matter who wins, “all roads lead to inflation,” and that’s why he’s going long on gold and bitcoin.
Jones said that commodities in general are “under-owned.” Outside of gold and silver, inflows for commodity ETFs broadly have been anemic this year.
Bitcoin is another story.
U.S. spot cryptocurrency exchange-traded funds have seen $20.7 billion of inflows since their debut in January, with $3.6 billion of that coming in the past month.
IBIT Flows Surge While GBTC Drains Assets
The iShares Bitcoin Trust (IBIT) alone has seen year-to-date inflows of $23.2 billon and one-month inflows of $2.3 billion.
Those inflows have been partially offset by the $20.1 billion and $32 million of outflows that the Grayscale Bitcoin Trust (GBTC) has seen since January and over the past month, respectively.
In addition to buying gold, bitcoin, and commodities, Jones believes that investors can protect their portfolios from inflation through tech stocks.
“I think most young people find their inflation hedges via the Nasdaq. That’s also been great,” he said.
The Invesco QQQ Trust (QQQ) has seen inflows of $1.8 billion since the start of the year and $1.4 billion over the past month.
