Gold and Bitcoin ETFs Surge as Investors Flee Fiscal Risks

Investors are flocking to gold and Bitcoin exchange-traded funds (ETFs) as hedges against fiscal risks, with related ETFs collectively attracting $7 billion in net inflows over the past five trading days.

The influx of capital has propelled the largest gold and Bitcoin ETFs into the top ranks of U.S. ETF inflows, alongside flagship stock market products.

The driving force behind this wave of investment is renewed concern over the U.S. debt burden, the dollar's trajectory, and efforts to manage long-term yields.

U.S. Treasury Secretary Bessent's plan to double the scale of long-term Treasury bond buybacks triggered a market reaction, with gold and Bitcoin prices surging as U.S. Treasury yields and the dollar declined.