$7 Billion Invested in Bitcoin and Gold ETFs Amid Fears of Fiscal Deficits
A combined $7 billion flowed into Bitcoin and gold exchange-traded funds (ETFs) over five trading days in late August, according to data from Bloomberg. This influx is significant as it marks a new trend where investors are increasingly buying both assets together rather than treating them as competing hedges.
The State Street Investment Management's SPDR Gold Shares (GLD) attracted nearly $3.4 billion, while BlackRock's iShares Bitcoin Trust ETF (IBIT) drew another $1.5 billion. Both products ranked among the top 10 US ETFs by inflows for the week.
The trend is notable as gold has traditionally dominated defensive allocations during periods of fiscal or geopolitical stress. However, with concerns about persistent US fiscal deficits and government borrowing, investors are turning to assets that can't be easily expanded in supply, namely Bitcoin and gold.