CryptoSlate
Gold and Bitcoin exchange-traded funds took in roughly $7 billion over five US trading sessions, the largest combined haul on record. About $3.4 billion flowed into SPDR Gold Shares, while BlackRock’s iShares Bitcoin Trust attracted roughly $1.5 billion. Together, the two dominant funds captured about 70% of the inflows.
Bitcoin rose above $80,000 as gold traded above $4,600 an ounce. Both assets have rising 200-day moving averages and ByteTrend scores of 5, ByteTree’s strongest bullish reading, while the dollar’s score fell to zero.
Why it matters
The synchronized demand reflects concern over US debt, Treasury-market strain and a softer dollar. US public debt is already above $40 trillion, while the Treasury raised the maximum size of liquidity-support buybacks for longer-dated securities to at least $4 billion per operation on Aug. 19.
Investors are revisiting the debasement trade as persistent deficits and expanding currency supply threaten purchasing power. Bitwise Chief Investment Officer Matt Hougan argued that a conventional 60/40 portfolio remains entirely exposed to fiat currency, increasing the appeal of a limited allocation to scarce assets.
Bitcoin’s fixed supply of 21 million makes it a direct candidate for that allocation. Bernstein estimates that about 60% of Bitcoin is held by investors who have remained through drawdowns exceeding 50%. BlackRock separately estimated that a 1% to 2% Bitcoin allocation could have improved the risk-adjusted performance of a traditional 60/40 portfolio.
Market impact
GLD manages more than $150 billion in assets, while IBIT holds around $60 billion. Their scale makes them the primary institutional access points for gold and Bitcoin, turning the record flows into a significant signal for portfolio allocation rather than a marginal trading event.
The case for durability rests on policy continuing to favor currency debasement over prolonged fiscal restraint as debt-servicing costs rise. A stronger dollar or higher real yields could weaken demand.
Frequently asked questions
-
How much did gold and Bitcoin ETFs receive over five sessions?
They drew roughly $7 billion in combined inflows, described by Bloomberg Intelligence analyst Eric Balchunas as a record for the pairing.
-
Which funds captured most of the combined inflows?
SPDR Gold Shares received about $3.4 billion, while BlackRock’s iShares Bitcoin Trust attracted roughly $1.5 billion. Together, they accounted for about 70% of the total.
-
Why are investors buying Bitcoin and gold together?
Both have constrained supply and are attracting demand amid US debt concerns, Treasury-market strains and a softer dollar. The trend is commonly described as a debasement trade.
-
How much Bitcoin remains held through severe drawdowns?
Bernstein estimates that about 60% of Bitcoin is held by investors who remained through declines exceeding 50%.
-
What could determine whether this is a durable allocation shift?
Sustained ETF inflows would support the case for a lasting shift. A stronger dollar, higher real yields or fading Bitcoin demand could limit Bitcoin’s defensive status relative to gold.
Crypto News
CoinDesk
CoinTelegraph
WuBlockchain
WatcherGuru