US Financial Risks Benefited Gold and Bitcoin! Record Capital Inflows in the Last Five Trading Days! Here’s All the Data

Concerns about the US fiscal outlook and rising public debt are causing investors to turn to both gold and Bitcoin. According to Bloomberg data, a record $7 billion in capital inflows were recorded into gold and Bitcoin ETFs in the last five trading days. The strong preference for both assets during the same period indicates a shift in risk perception in the markets.

Approximately $3.4 billion of the capital inflow went to the SPDR Gold Shares (GLD) fund managed by State Street Investment Management. BlackRock’s spot Bitcoin ETF, IBIT, recorded inflows of approximately $1.5 billion. Both ETFs ranked among the top 10 ETFs traded on US exchanges in terms of weekly capital inflows.

Bloomberg noted that the simultaneous strong inflow of funds into both gold and Bitcoin was particularly noteworthy. It pointed out that in the past, when market stress increased, investors generally turned to gold, seen as a safe haven, while Bitcoin received relatively less attention during such periods.

However, investor behavior has shifted recently. Expectations that the US government will borrow more, concerns about the value of the dollar, and policies aimed at suppressing long-term interest rates are increasing demand for assets with limited supply.

The simultaneous rise in the value of gold and Bitcoin indicates that investors are turning to alternative assets to mitigate the financial risks inherent in the traditional financial system. In particular, the intensification of debates surrounding the sustainability of the US debt is leading investors to allocate more of their portfolios to scarce assets.

According to experts, strong inflows into ETF markets could be a significant signal that institutional investors are increasingly considering Bitcoin as a portfolio diversification tool similar to gold. However, Bitcoin’s high price volatility indicates that the risk profiles of the two assets are still significantly different.

*This is not investment advice.