$7 Billion Inflow into Gold and Bitcoin ETFs

In the last five trading days, $7 billion has flowed into gold and Bitcoin (BTC) exchange-traded funds (ETFs). Approximately $3.4 billion entered SPDR Gold Shares (GLD), while $1.5 billion went into BlackRock's iShares Bitcoin Trust (IBIT). This movement of funds is analyzed to be a response to concerns over U.S. fiscal burdens and a weakening dollar. According to Bloomberg News, the U.S. Treasury's plan to expand its long-term bond buyback has contributed to lowering long-term interest rates and the dollar, stimulating demand for assets with limited supply. According to Dow Jones Market Data, $2.5 billion flowed into spot BTC ETFs over the last seven trading days, marking the largest inflow since October of last year. However, the $7 billion figure combines both gold and BTC ETFs, and interpreting it solely as BTC supply and demand could exaggerate the nature of the fund flow. The World Gold Council (WGC) reported that U.S. gold ETFs recorded a net outflow of 61 tons in the first half of the year. In July, global gold ETFs reversed with a net inflow of $3 billion. The flow of gold ETFs is sensitive to real interest rates and dollar movements, with gold being a traditional safe-haven asset and BTC being a highly volatile digital asset, indicating that the risk structures of the two assets differ.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.