BlackRock’s Spot Bitcoin ETF (IBIT) Surpasses SPDR Gold Trust (GLD) in Year-to-Date Investments

This year has seen gold prices rise by nearly 29%, significantly outpacing the 3.8% increase in Bitcoin (BTC). Nevertheless, this hasn’t discouraged investors from seeking opportunities in the largest cryptocurrency.

Since the beginning of the year, BlackRock’s spot Bitcoin ETF (IBIT) has seen net investments of $6.96 billion, ranking it as the sixth-largest among all exchange-traded funds, as reported by ETF analyst Eric Balchunas. In contrast, the SPDR Gold Trust (GLD), which is the largest gold ETF backed by physical gold, fell to the seventh position this Monday, with net inflows of $6.5 billion.

The superior performance of IBIT reflects continuing institutional faith in Bitcoin’s future, despite its less impressive recent price trends. The price of gold has climbed to $3,384, driven by issues surrounding global trade, escalating inflation fears, and rising geopolitical tensions. At the same time, Bitcoin, often referred to as digital gold, reached a record high in January but is currently trading more than 10% below that peak.

“The increased capital inflow amid such circumstances is a promising indicator for the long term and boosts our confidence in predicting that Bitcoin ETFs will outpace gold’s assets under management in the next 3-5 years,” Balchunas expressed on X.