Bitcoin ETFs Outstrip Gold as Investors Turn to ‘Better Hedge’ Against US Assets
The post Bitcoin ETFs Outstrip Gold as Investors Turn to ‘Better Hedge’ Against US Assets appeared on BitcoinEthereumNews.com.
In brief Bitcoin ETF inflows have exceeded $3 billion over five trading days while gold ETFs experienced $1 billion in outflows, creating a $4 billion gap between them. According to analysts, Bitcoin is outperforming gold ETFs because it serves as a better hedge against U.S. asset reallocation, evidenced by rising Treasury yields and declining demand. Standard Chartered predicts Bitcoin will reach new record highs, with targets of $120,000 by the end of Q2 and $200,000 by year-end despite today’s slight market decline. Bitcoin ETF inflows in the U.S. have topped $3 billion over the past five trading days, with data from Standard Chartered also showing that gold ETFs have suffered an outflow of $1 billion. Writing in an investor note, Standard Chartered analyst Geoffrey Kendrick also highlighted that the gap between Bitcoin ETF and gold ETF flows has reached $4 billion, which is the biggest it has been since the week of the U.S. presidential election in November. Bitcoin ETFs are outstripping their gold counterparts because BTC is “a better hedge than gold against strategic asset reallocation out of the U.S.,” Kendrick wrote. A sign of this reallocation is evident in how U.S. Treasury yields have been rising, which in turn is a sign of falling demand. “U.S. Treasury term premium (which has a close correlation to BTC) is at a 12-year high,” wrote Kendrick. “Time-of-day analysis suggests that U.S.-based investors may be seeking non-US assets.” State Street Markets’ Michael Metcalfe proffered a similar analysis this morning in his own note to investors, writing that “long-term foreign investor demand for 30-year Treasurys has been below average all year, but ended April with weekly flows close to a five-year low.” It’s this drop in demand for U.S.-based assets that’s driving increased demand for Bitcoin (ETFs), he reasoned. Kendrick added that recent…
Filed under: News - @ April 30, 2025 4:23 am