"Digital Gold" makes a comeback! Investors abandon gold to invest in Bitcoin ETF, attracting 9 billion US dollars.

The ETF market on US exchanges is showing a polarization trend: investors are reducing their holdings in gold assets and instead pouring into the bitcoin market, also known as "digital gold". Data shows that in the past five weeks, US bitcoin ETFs led by the iShares (IBIT) bitcoin ETF under BlackRock have seen a total net inflow of over $9 billion, while gold ETFs have experienced over $2.8 billion in outflows during the same period. Recent easing of trade tensions has weakened the demand for traditional safe-haven assets like gold, while increasing concerns about US fiscal stability have strengthened the position of bitcoin as an alternative store of value. Earlier this month, driven by positive regulatory signals such as progress in stablecoin legislation and increased macroeconomic uncertainty, bitcoin briefly hit a historical high of $111,980. Gold, although still up over 25% for the year, has retreated from recent highs and is currently trading around $190 lower than its historical peak. Analysts say this rotation of assets indicates that the market is increasingly accepting bitcoin as a legitimate hedging tool. Christopher Wood, global equity strategist at Jefferies, said, "I remain bullish on gold and bitcoin. They are still the best hedge against currency devaluation risks faced by G7 countries." However, skeptics warn that the high volatility of bitcoin still hinders its ability to be a true safe-haven asset. Looking back at macro events such as the unwinding of yen carry trades in August last year, bitcoin saw a sharp drop along with other risk assets. Some institutions believe that bitcoin is showing unique advantages. Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered Bank, wrote in a recent report, "Due to its decentralized nature, bitcoin is more effective at hedging financial system risks." He compared its performance during geopolitical conflicts (such as tariff escalation) to that of gold. Kendrick added that bitcoin plays a hedging role through two main channels: one is to address risks in the private sector, such as the collapse of Silicon Valley Bank in 2023; the other is to hedge government institution risks, including concerns about the stability of US debt. He said, "Recent threats to the independence of the Federal Reserve (through the potential replacement of Powell), tariff escalation, and widespread doubts about the credibility of US policies all fall into the second category of risks." It is worth noting that bitcoin is shedding its inherent label as a tech risk asset, increasing its attractiveness. Dilin Wu, Research and Strategy Analyst at Pepperstone, said, "Over the past month, the daily correlation between bitcoin and the Nasdaq index, the US dollar, and even gold has significantly decreased. This shift implies that bitcoin may be gradually viewed as a hedging tool - even a non-correlated asset class, rather than simply speculative trading." The intensifying debate is taking place against a backdrop of increasing fiscal pressure. Moody's recent decision to downgrade the US credit rating to match that of Fitch and S&P, citing the increase in US deficits and debt, has added fuel to the fire. Despite this, gold has outperformed bitcoin for the year, with a gain of about 25% compared to bitcoin's 15%.