Total known holdings in gold exchange-traded funds (ETFs) have surged to their highest level since 2023, breaking a four-year streak of consistent outflows.
This renewed investor appetite for gold comes as the Bloomberg Galaxy Crypto Index (BGCI) stagnates near levels last seen in early 2021.
Notably, this divergence is raising concerns about crypto’s ability to reclaim its leadership in the risk-asset space, according to Bloomberg Intelligence senior commodity strategist Mike McGlone.
In a June 30 post on X, McGlone shared data showing that as of June 27, 2025, gold ETF holdings had surpassed 104.7 metric tonnes, while the BGCI hovered at 859.95. This metric signals waning investor enthusiasm for major cryptocurrencies.
The data indicated a steady rise in gold ETF inflows, contrasting with fading momentum in digital assets.
Fading speculative frenzy
Additionally, the strategist attributed this divergence to a broader macroeconomic recalibration. In this case, as the liquidity wave from the COVID-era stimulus recedes, the speculative frenzy that fueled crypto markets has cooled.
Meanwhile, gold, long viewed as a hedge against monetary excess and deflationary risk, appears to be reclaiming its traditional safe-haven status.
In 2025, the metal has seen renewed demand as investors seek shelter amid escalating economic uncertainty tied to trade tensions and geopolitical instability.
Some analysts have even warned that gold could hit $5,000 if the global economy enters a severe downturn.
McGlone cautioned that with current market dynamics, any stumble in U.S. equities could trigger a cascade of “deflationary dominoes”, tightening credit, weakening growth, and driving more investors toward hard assets like gold.
In such an environment, digital assets may struggle to compete with the perceived stability and physical backing of bullion-based ETFs.
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