$7 Billion Frenzy: Investors Abandon Traditional Portfolios for Gold and Bitcoin
A record $7 billion flowed into gold and Bitcoin funds in five days, prompting Bitwise CIO Matt Hougan to criticize the traditional 60/40 portfolio.
The 60/40 mix holds 60% stocks and 40% bonds, both of which are priced in dollars. However, this leaves investors exposed if the dollar loses value.
Hougan noted that a 60/40 portfolio is '100% exposed to fiat currency.'
In contrast, gold and Bitcoin have gained popularity as safe-haven assets, with $3.4 billion flowing into SPDR Gold Shares (GLD) and over $1 billion into BlackRock's iShares Bitcoin Trust (IBIT) in the week through August 21.
Central banks have already shifted towards hard assets, with gold reaching 27% of their reserves by late 2025, overtaking US Treasuries at 22%, according to European Central Bank figures.