Bitcoin ETFs Surge Amid Geopolitical Tensions

Bitcoin ETFs and gold ETFs have seen sharply diverging capital flows since geopolitical tensions escalated in the Middle East last month, according to a JPMorgan research note.

The largest spot gold ETF, SPDR Gold Shares, has experienced outflows equal to roughly 2.7% of its assets under management since February 27. In contrast, BlackRock's iShares Bitcoin Trust, the largest spot Bitcoin ETF, recorded inflows of approximately 1.5% over the same period.

JPMorgan noted that flows from last October showed a rotation from Bitcoin into gold, led primarily by retail investors. However, despite this earlier rotation, Bitcoin ETFs maintain a larger cumulative lead, with BlackRock's iShares Bitcoin Trust's total inflows since 2024 roughly doubling those recorded by SPDR Gold Shares over the same timeframe.