Bloomberg: "Easing Trade Tensions Lead to Money Move from Gold to Bitcoin"

Over the past five weeks, more than $9 billion has flowed into United States of America spot Bitcoin (BTC) ETFs. Recent analysis suggests that as global trade tensions ease, funds that were concentrated in gold are moving into Bitcoin.

Bloomberg reported on the 28th (local time), "In the past five weeks, over $9 billion has flowed into United States of America Bitcoin ETFs," stating, "Notably, BlackRock IBIT played a major role." Bloomberg also shared, "(Meanwhile) more than $2.8 billion have exited gold-based funds during the same period."

The inflow trend toward Bitcoin ETFs has strengthened due to the recent easing of trade tensions. Bloomberg explained, "With the easing of trade tensions, demand for traditional safe assets like gold has decreased," adding, "As concerns over United States of America fiscal soundness grow, there is a stronger tendency to view Bitcoin as an alternative store of value (SoV)."

There are even views that Bitcoin could establish itself in the long term as a more popular hedge than gold. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered (SC), told Bloomberg, "Thanks to its decentralized nature, Bitcoin is more effective (than gold) against financial system risks," adding, "Bitcoin can simultaneously serve as a hedge against both private-sector risks such as the 2023 Silicon Valley Bank (SVB) collapse and risks to government institutions like those associated with the United States Department of the Treasury."