The post Is the ‘debasement trade’ about to flood BTC ETFs? appeared on BitcoinEthereumNews.com.

Gold pushed through $4,000 per ounce for the first time this week, validating a macro narrative that is spilling into Bitcoin demand and positioning spot ETFs for record fourth-quarter flows. The “debasement trade” involves investors shifting their holdings from fiat-denominated cash and bonds into assets that retain purchasing power when government debt is high or currency credibility is in question. Investors purchase scarce assets, such as gold, Bitcoin, and real commodities, to hedge against currency erosion when monetary policy loosens or fiscal slippage accelerates. The logic applied is that if the currency’s real value is eroding, the answer is owning things that cannot be printed. Additionally, real yields have wobbled as fiscal risks mount, and the US money supply has increased 44% since 2020, creating conditions that favor scarce assets. Getting into gold’s draft Gold’s surge crystallized the hedge narrative. Analysts attributed the rally to growing concerns about public debt, a prolonged US government shutdown, and persistent demand for safe-haven assets, with central bank buying and ETF inflows reinforcing the move. Bitcoin has been mentioned alongside gold as an alternative to hedge against debasement, and flows confirm this connection. Last week, spot Bitcoin ETFs recorded $3.5 billion in net inflows, with a total of roughly $5.9 billion flowing into crypto funds overall. This is a record for both Bitcoin and crypto products in terms of weekly flows. The timing reflects shared drivers. Gold’s break above $4,000 validates the macro hedge bid and widens the audience for hard-asset exposure. Meanwhile, ETFs make Bitcoin the marginal recipient because they remove custody and operational friction for US institutions. The co-movement in narratives and fund flows has been evident, even if the assets do not track each other on an hour-to-hour basis. Part of a bullish case Matthew Hougan, chief investment officer at Bitwise,…

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Filed under: News - @ October 8, 2025 8:25 pm