Bitcoin and Gold ETFs Update

While spot bitcoin exchange-traded funds registered their largest-ever daily outflow of nearly $1 billion yesterday, spot gold ETFs continue to attract significant inflows, benefiting gold-backed cryptocurrencies.

Gold ETF Inflows

Physically-backed gold ETFs recorded their largest weekly inflow (52.4 tons, approximately $4.9 billion) since March 2022, driven mainly by demand from North America. Gold ETF holdings now total 3,326 tons, valued around $314 billion (World Gold Council).

Despite recent fluctuations, gold prices have risen nearly 11% in 2025 and 43% year-over-year, currently trading at $2,910 per ounce. Analysts attribute this to increased geopolitical tensions and uncertainty regarding Trump tariffs.

Gold-Backed Cryptocurrencies Performance

Gold-backed cryptocurrencies like Paxos gold (PAXG) and Tether gold (XAUT) have outperformed the broader crypto market, which is up 26% year-over-year (CoinDesk 20 Index). Demand for these tokens has surged, with over $25 million in commodity-backed tokens minted this month—the highest since December 2022—while approximately $12 million were burned.

Supply vs. Demand

As demand for gold rises, supply remains relatively stable. The World Gold Council reports a slight decrease in mining production by two tons last quarter, though hedging and recycling activities have increased, resulting in a year-over-year supply growth of 1%.