Gold lost billions in March. Bitcoin quietly raised more than a billion.
Flows tell a diverse story
US place Exchange-traded Bitcoin funds attracted $1.32 billion in net inflows last month, even if they are based in the US gold ETFs lost $2.92 billion in net outflows over the same period.
The gap caught the attention of Bloomberg ETF analyst James Seyffart, who said the trend reflects something bigger than a monthly blip; it points to Bitcoin’s growing appeal as a multi-purpose wallet asset.
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“There are just more use cases for why someone would put a Bitcoin ETF in a portfolio,” says Seyffart said on the Coin Stories podcast, published Friday on YouTube.
Gold’s rough march was interrupted by a single brutal day. On March 4, GLD – the largest US gold-backed ETF – recorded an outflow of $3 billion, the largest single-day outflow in more than two years.
Data from the Bank for International Settlements, cited in mid-March reports, showed that Wall Street had accelerated its gold sales over the past four months, even as private buyers snapped up the metal at three times the rate of six months earlier.
Bitcoin plays multiple roles, gold plays one
Seyffart’s argument rests on a simple contrast. Gold is widely seen as a hedge against inflation and currency depreciation – and not much else.
According to the analyst, Bitcoin is used in different ways by different investors. Some buy it as a store of value, similar to gold. Others view it as a growth tool or a way to bet on liquidity conditions. Still others view it as a form of digital property or capital.
“It can be hot sauce in a portfolio,” Seyffart said, describing how Bitcoin’s volatility and return potential can undermine overall performance for investors willing to bear the risk.
Based on that reasoning, Seyffart said his vision is simple: Bitcoin ETFs will eventually surpass gold ETFs in total assets under management.
US gold ETFs currently hold far more assets under management than their Bitcoin counterparts, so that would represent a significant shift in the direction in which big money parks itself.
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Both assets fell at the same time
Opposing ETF flows have not stopped Bitcoin and gold from falling. Bitcoin was trading at $66,889 at the time of the original report, down 7.35% over the previous 30 days. Gold was at $4,674, down 8.20% over the same period.
According to Chris CooperGold and Bitcoin have a history of varying leadership. With gold set to outperform in 2025, Kuiper says it wouldn’t be surprising if Bitcoin took the next step.
Whether that rotation will occur remains to be seen. But March fund flow data shows that at least some investors have already made their move.
Featured image from Meta, chart from TradingView