Why Is Smart Money Betting on Bitcoin ETFs Over Gold in 2025?
Vignesh S G7 May 20252 min read
Gold may be outperforming Bitcoin in price this year, but institutional investors are making a big bet on Bitcoin. BlackRock’s iShares Bitcoin Trust (IBIT) has already attracted nearly $7 billion in inflows in 2025, surpassing the SPDR Gold Trust (GLD), the largest gold ETF in the world.
This shift shows that, while gold continues to perform well, institutions are increasingly confident in Bitcoin’s long-term potential.
Gold vs. Bitcoin: 2025 Performance Breakdown
Gold has been on a winning streak in 2025, delivering strong monthly gains:
- January: +6.59%
- February: +2.02%
- March: +8.72%
- April: +5.22%
- April 8–21 alone: +14.83%
- May (so far): +4%
Total YTD Growth: +30.33%
While Bitcoin has had a more volatile year, it’s still performing better than many expected:
- January: +9.54%
- February: -17.5%
- March: -2.19%
- April: +14.2%
- May (so far): +3.04%
Total YTD Growth: +3.84%
Clearly, gold is outperforming Bitcoin in terms of price this year. However, the ETF inflow data tells a different story.
Bitcoin ETFs Gaining Momentum
Despite Bitcoin’s less consistent price movement, BlackRock’s iShares Bitcoin Trust has pulled in $6.96 billion in inflows this year. In comparison, the SPDR Gold Trust attracted $6.5 billion. This shows a growing preference for Bitcoin ETFs as a long-term growth option, even as gold remains a traditional safe-haven asset.
Eric Balchunas, an ETF analyst, believes this trend is just beginning. He predicts that Bitcoin ETFs could eventually triple the assets under management of gold ETFS in the next 3–5 years, driven by institutional demand and increasing market confidence.
While gold continues to lead in performance, Bitcoin is steadily gaining institutional trust. The rising capital inflows into Bitcoin ETFs suggest that Bitcoin is no longer considered a fringe asset.
It’s quickly becoming a mainstream financial instrument, favored by institutions looking for long-term growth.
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FAQs
- Analysts expect Bitcoin ETFs to triple gold ETF assets in 3–5 years due to rising institutional demand.
