Battle For The Throne: Bitcoin Outshines Gold By Attracting Billions

Bitcoin seems to awaken from its slumber by recently crossing the 65,000 dollar mark. Despite this feat, it still struggles to reach its previous highs. Meanwhile, gold, true to its reputation, repeatedly hits record highs. Between the status of safe haven for one and the rise of investment funds for the other, the rivalry is becoming increasingly intense. Let’s dive into the numbers and trends of this economic duel.

Bitcoin vs Gold: Two worlds, two dynamics

On the record-breaking stage, gold leads the fight with 30 record highs achieved this year – including one in August after surpassing the 2,500 dollar mark, against only five for Bitcoin. Yet, it’s not a matter of popularity, but financial inflows. ETFs linked to Bitcoin have garnered 19 billion dollars since their launch, while funds backed by gold have attracted only 1.4 billion dollars, a striking contrast.

Interesting, since the launch of the bitcoin ETFs bitcoin has hit records highs 5 times but gold has hit record highs 30 times.. albeit has only taken in $1.4b in net flows vs $19b for btc ETFs.. via @psarofagis pic.twitter.com/3ZNbuW1XJW

— Eric Balchunas (@EricBalchunas) October 14, 2024

In terms of dynamism, Bitcoin attracts with its rapid and marked price movements, where gold remains in a more predictable pattern.

• 30 records reached for gold in 2023;
• 5 records for Bitcoin (BTC);
• 19 billion dollars invested in Bitcoin ETFs, against 1.4 billion for gold.

Periods of economic uncertainty and inflation have always favored gold, the old safe haven. But the massive inflows into Bitcoin ETFs indicate a change in mindset among investors, who are increasingly inclined to prioritize volatility and the potential for quick gains.

BTC ETFs: An ever-growing attraction

The recent ETF figures show record enthusiasm: over 555 million dollars flowed in one day into Bitcoin investment funds in the United States, a first since June.

Major players are not left out, with funds like Fidelity Wise Bitcoin Origin Fund, which captured 239.3 million dollars, and the Bitwise Bitcoin ETF with a little over 100 million.

“Ridiculous, it exceeds all expectations“, summarizes analyst Nate Geraci, noting the growing adoption by financial advisors and institutional investors.

Despite this enthusiasm, Ethereum-related products have not followed the same path, causing disappointment for BlackRock: very few entries, or even net outflows for some offerings, suggest a focus of interest on Bitcoin.

Some analysts wonder: in the face of growing tensions in the Middle East and geopolitical uncertainties, can Bitcoin survive against gold?