Why trust?
A strict editorial policy that emphasizes accuracy, relevancy, and impartiality
Expertly crafted by experts in the industry and thoroughly reviewed
Highest standards of reporting and publication
A strict editorial policy that emphasizes accuracy, relevancy, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
The recent trends of the Bitcoin exchange-traded fund market show a shift in investor sentiment. Funds are flowing to BTC funds, while funds backed by gold experience significant outflows.
Bitcoin ETFs emerge as preferred safehaven
Bloomberg reportUS Bitcoin-backed ETFs saw inflows exceeding $9 billion over the last five week, primarily driven BlackRock Inc.’s iShares Bitcoin Trust Fund ETF (IBIT). Gold-backed funds, on the other hand, have experienced outflows of over $2.8 billion in that same period.
Related Reading
As trade tensions ease, the demand for gold and other traditional safe-havens has decreased. Bitcoin, meanwhile, is becoming a more viable store of value in the face of growing concern about US fiscal security.
In addition, market leaders are also the most prominent cryptocurrency The record-breaking amount of $111 980 was reached, boosted by positive regulatory changes and increasing macroeconomic uncertainties.
Gold is still up over 25% in this year but it’s retreated since its recent highs. It currently trades at around $190 less than its previous all-time peak.
BTC’s Benefits over Gold
Analysts say that this shift towards Bitcoin ETFs shows a growing acceptance by investors of cryptocurrency as an investment hedge.
Christopher Wood, Global Equity Strategist at Jefferies expressed his optimism regarding both Bitcoin and gold, pointing out their efficacy as hedges to currency depreciation in G7 countries.
Bitcoin is a safe haven, but skeptics say that its notorious volatility undermines this. Historic instances of macroeconomic Bitcoin has fallen sharply along with other risky assets. Bitcoin has a decentralized structure, which some believe gives it an edge over gold during times of systemic risks.
Geoff Kendrick is the global head for digital assets at Standard Chartered. He highlighted Bitcoin’s double role in protecting against private sector risks such as the failure of Silicon Valley Bank by 2023 and concerns related to government, like the stability of US Treasury.
Kendrick said that Bitcoin is gaining in popularity because of recent concerns regarding the credibility of US policies, along with escalating tariffs and threats against Federal Reserve (Fed).
Related Reading
Bitcoin’s reputation has also changed. It is no longer viewed as just a technology-related risk asset. Dilin Wang, a Pepperstone research strategist, pointed out that Bitcoin’s intraday correlation to major indices such as the NasdaqThe dollar, gold and the euro have all seen a significant decline.
These assets have become more popular due to the growing fiscal stress. Moody’s downgraded US credit ratings from triple-A to a lower rating recently, citing concern over the ballooning national debt and deficits.
This downgrade aligns the US with other ratings agencies, including Fitch and S&P Global, which already rate the country below the top tier.
Gold continues to perform better than Bitcoin, despite the recent rise in its popularity. It has gained about 25%, compared with Bitcoin’s gain of around 15%.
Featured Image from DALL E, Chart by TradingView.com
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
