BTC vs GOLD: BTC Surpassed Gold In Net Inflows

Thursday was eventful for all the BTC enthusiasts. Due to major institutional interest and the growing popularity of BTC ETFs, BTC managed to surge past the $97,300 mark. Recent data shows that spot BTC ETFs have accumulated over 40 billion US dollars in net flows. This figure has significantly outpaced gold. As a result, enthusiasts are claiming that BTC might soon take over Gold’s status as the go-to hedge fund for a rainy day. 

Moreover, this surge also suggests that BTC is gaining renewed investor interest. This could prove great as BTC was nearly crashing, and people were looking to shed the weight of a sinking token. However, the trajectory has changed as BTC is recovering for several reasons. One of the primary reasons for this turnaround is the US Government’s renewed stance on crypto under the leadership of President Trump.  

President Trump is looking to turn America into the ‘crypto capital’ of the world. As a result, he is making some immense changes to the status quo of the SEC, the primary crypto regulatory body in the USA. Therefore, BTC is getting the political backing it needs for this recovery. 

Growing Weight Of BTC 

On the other hand, gold ETFs saw minimal net inflows of just $203 million or 2.17 tons, even though the asset experienced a remarkable 45% surge in prices. At the time of writing, gold is being traded for $2,950 per ounce. As per Bloomberg ETF analyst Eric Balchunas, there is a general disinterest among investors when it comes to safe-haven assets like gold. Balchunas says ‘no one cares’ about gold, unlike BTC.  

The current upward trajectory of BTC is mainly due to the renewed stance of SEC institutional interest. A leading institutional investor named Metaplanet invested around $169.9 million in BTC and increased its holdings to 2,100 BTCs. The firm has released a statement claiming that they are not done yet. The company aims to expand its repertoire to 10,000 BTC by 2025 and 21,000 BTC by 2026.  

Metaplanet is not the only name in the industry. Other institutional investors are also looking to invest in BTC. Therefore, BTC could recover its all-time high of $108,786 in a few months.