Financial and Business News

Gold Loses Its Shine as Investors Shift Billions to Bitcoin ETFs from Metal Funds

Thursday, 29/05/2025 | 14:21 GMT by Tareq Sikder
  • Bitcoin ETFs saw strong inflows over five weeks, while gold-backed funds lost $2.8 billion.
  • Market shifts reflect changing investment strategies driven by inflation and interest rate outlooks.
gold btc

US-listed Bitcoin exchange-traded funds (ETFs) have recorded approximately $9 billion in net inflows over the past five weeks, according to a Bloomberg report. This marks a notable shift in investor sentiment, as funds continue to flow out of gold-backed ETFs during the same period.

Gold Outflows Rise, Bitcoin ETFs Surge

Meanwhile, gold-backed funds have suffered outflows exceeding $2.8 billion, based on data compiled by Bloomberg News. The divergence suggests that some investors are reallocating capital from traditional safe-haven assets like gold toward Bitcoin, which is increasingly being considered a store of value and a portfolio diversifier.

The recent inflows have been led by several prominent Bitcoin ETFs that launched earlier this year following regulatory approval in the United States.

You may find it interesting at FinanceMagnates.com: How High Can Bitcoin Go? BTC Price Eyes $140K Summer Target as Institutions Drive Predictions of New Rally.

Digital Assets Reshape Traditional Investment Strategies

Analysts note that the trend is influenced by various macroeconomic factors, including inflation expectations, interest rate policies, and evolving institutional investment strategies.

The data reflects a transformation in the financial markets, where digital assets are playing an increasingly mainstream role in portfolio construction and capital allocation.

DeepSeek AI Projects Bitcoin's 2025 Scenarios

DeepSeek AI has outlined three possible scenarios for Bitcoin’s performance in 2025. In its base case, the cryptocurrency is projected to trade between $100,000 and $150,000. A more optimistic scenario sees the price reaching $350,000, while an extreme case projects a peak of $500,000. The forecasts are based on factors such as institutional interest and broader adoption of blockchain technology in the financial sector.

US-listed Bitcoin exchange-traded funds (ETFs) have recorded approximately $9 billion in net inflows over the past five weeks, according to a Bloomberg report. This marks a notable shift in investor sentiment, as funds continue to flow out of gold-backed ETFs during the same period.

Gold Outflows Rise, Bitcoin ETFs Surge

Meanwhile, gold-backed funds have suffered outflows exceeding $2.8 billion, based on data compiled by Bloomberg News. The divergence suggests that some investors are reallocating capital from traditional safe-haven assets like gold toward Bitcoin, which is increasingly being considered a store of value and a portfolio diversifier.

The recent inflows have been led by several prominent Bitcoin ETFs that launched earlier this year following regulatory approval in the United States.

You may find it interesting at FinanceMagnates.com: How High Can Bitcoin Go? BTC Price Eyes $140K Summer Target as Institutions Drive Predictions of New Rally.

Digital Assets Reshape Traditional Investment Strategies

Analysts note that the trend is influenced by various macroeconomic factors, including inflation expectations, interest rate policies, and evolving institutional investment strategies.

The data reflects a transformation in the financial markets, where digital assets are playing an increasingly mainstream role in portfolio construction and capital allocation.

DeepSeek AI Projects Bitcoin's 2025 Scenarios

DeepSeek AI has outlined three possible scenarios for Bitcoin’s performance in 2025. In its base case, the cryptocurrency is projected to trade between $100,000 and $150,000. A more optimistic scenario sees the price reaching $350,000, while an extreme case projects a peak of $500,000. The forecasts are based on factors such as institutional interest and broader adoption of blockchain technology in the financial sector.

About the Author: Tareq Sikder
Tareq Sikder
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A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

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