Gold and Bitcoin See Record $7 Billion Inflow Amid US Fiscal Worries

A recent surge in investor demand for gold and Bitcoin has led to a record $7 billion in capital inflows into their respective exchange-traded funds (ETFs) over the last five trading days.

The strong preference for both assets indicates a shift in risk perception among investors, who are turning to these alternative assets as a hedge against financial risks inherent in the traditional system.

The SPDR Gold Shares fund managed by State Street Investment Management saw approximately $3.4 billion in inflows, while BlackRock's spot Bitcoin ETF, IBIT, recorded around $1.5 billion in capital inflow.

This simultaneous increase in demand for gold and Bitcoin is a notable shift from previous market stress periods, when investors typically turned to gold as a safe haven while Bitcoin received relatively less attention.