Investors Swap Gold for Bitcoin as ETF Inflows Soar to Record Highs

By Ben Knight February 15, 2024 In Bitcoin, ETF
  • Outflows from GBTC are starting to slow, as inflows into Bitcoin spot ETFs reach new levels.
  • Bitcoin has long been seen as an alternative to digital gold, but that idea is starting to become reality thanks to the greater accessibility of the Bitcoin ETF.
  • Nearly USD $2B has been moved out of gold ETFs since the SEC approved the BTC ETF.
  • BlackRock is responsible for more than half of all inflow volume, averaging nearly USD $760M per day.

It’s taken nearly a month for outflows from the pre-existing Grayscale Bitcoin Trust (GBTC) to dry up, as investors moved from the futures-based fund into spot Bitcoin ETFs. However, dry up they have, as inflows for spot Bitcoin ETFs start to significantly outweigh capital leaving the GBTC holdings. The past week has seen record highs for ETF inflows, resulting in a BTC price surge. Bitcoin is up 17% on the week after bursting through the USD $50K (AUD $77K) milestone yesterday.

Digital Gold Moniker Ringing True

Maximalists have often touted Bitcoin as a form of digital gold. It is a high-value, limited-supply asset that is mostly uncorrelated from traditional markets. However, Bitcoin poses some advantages over gold as an investment – storage is much less of an issue (because, well, where are you going to keep kilos worth of precious metals?) and access is far more streamlined. 

This has been the warcry of Bitcoin lovers for the best part of a decade, but it hasn’t rung true in practice – until now. 

The introduction of a spot Bitcoin ETF has seen institutions start to scramble into the industry, as the average business and investor now have a simplified way to gain exposure to the digital currency.


According to ZeroHedge, this is causing many high-net-worth individuals and companies to reconsider their investment portfolios. The numbers paint a pretty clear picture – Bitcoin is becoming a more attractive version of gold. Since spot ETFs were approved, nearly USD $2 billion (AUD $3.08 billion) has left gold ETFS, with double that figure coming back into BTC ETFs.

BlackRock Still Clearing the Pack

BlackRock’s Bitcoin ETF was always going to be one of the top performers, with its low fees and huge institutional backing. However, just how far ahead of the rest it is has been somewhat of a shock. The fund – IBIT – has just smashed its own weekly inflow record… and it’s only Wednesday. 

BlackRock’s fund is consistently responsible for more than half of the inflows on any given day of Bitcoin ETF trading. 

Whether or not you believe in Bitcoin’s long-term potential, there’s no denying the companies that latched onto the spot ETFs are making bank at this point in time.
Read it and weep, Vanguard.

Ben Knight

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.

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