BlackRock’s spot Bitcoin exchange-traded fund (IBIT) has achieved a remarkable $6.96 billion in net inflows since the beginning of 2025, overtaking the SPDR Gold Trust (GLD) to secure its position as the sixth most popular ETF by inflows.
As reported by Bloomberg’s senior ETF analyst, Eric Balchunas, GLD, the largest physically backed gold ETF globally, has fallen to seventh place with net inflows of $6.5 billion as of Monday.
This shift signals a growing trend among institutional investors, who are increasingly favoring digital assets like Bitcoin over traditional safe-haven investments such as gold.
Investor Confidence in Bitcoin Versus Gold
Despite a recent decline in Bitcoin’s price, which has dropped over 10% from its peak in January, investor confidence in the long-term prospects of the cryptocurrency remains strong.
Meanwhile, gold has surged more than $3,000 this year, driven by concerns regarding inflation, global trade disputes, and geopolitical tensions.
Balchunas emphasized on X that the significant inflows into IBIT represent “a really good sign for the long term” and lend credence to projections that Bitcoin ETFs could eventually manage assets three times greater than their gold counterparts.
$IBIT took in another half a billion yesterday, extending its inflow streak to 15 days and is now sixth in year-to-date flows, surpassing $GLD, which is notable because IBIT is only up 4% while GLD has been experiencing a strong rally. To draw in more capital under these conditions is a positive indicator for the long term, and… pic.twitter.com/9HWqYxtyJ4
— Eric Balchunas (@EricBalchunas) May 6, 2025
Recent reports indicate that spot Bitcoin ETFs are fueling a substantial accumulation trend, buying nearly six times more Bitcoin last week than what was produced by miners.
A report from asset allocator HODL15Capital dated May 4 reveals that spot Bitcoin ETFs purchased 18,644 BTC during the week, contrasting sharply with the mere 3,150 BTC mined in the same timeframe.
As of now, although spot Bitcoin and Ethereum ETFs have received regulatory approval, the SEC has yet to authorize ETF products involving staking functionalities, which have already been allowed in markets like Canada and Europe.
In a related initiative, the Crypto Council for Innovation, which includes prominent firms such as a16z crypto, Consensys, and Kraken, has appealed to the SEC for more clarity regarding staking regulations.
In a letter addressed to Commissioner Hester Peirce, the coalition contended that staking is a technical operation rather than a securities transaction, urging the agency to endorse its appropriate inclusion in ETFs.
Currently, over 70 cryptocurrency ETF applications are pending a decision from the SEC, as noted by Bloomberg.
Bitcoin Gains Ground as Markets Seek Federal Reserve Direction
Nansen, in its latest pre-FOMC market update shared with Finance Newso.com, highlighted a shift towards cautious optimism, with investors anticipating three potential rate cuts from the Federal Reserve in 2025, possibly starting in July.
While no changes are anticipated in the upcoming meeting, the overall market outlook has improved, reflecting decreased recession risks and more favorable macro indicators.
Consumer spending in the U.S. has slowed but remains resilient at an annualized rate of 1.8%, amid some pressures on low- and middle-income households.
Inflation, particularly in the services sector, continues to exceed the Fed’s target, while jobless claims have risen slightly without indicating a labor market collapse.
Proposed fiscal policies, including tax cuts and manufacturing incentives, provide potential for positive developments, although uncertainties surrounding trade negotiations remain.
Nansen indicated that Bitcoin’s technical performance has become more robust in comparison to equities, noting that BTC maintains an upward trajectory, supported by strong momentum indicators, favorable moving averages, and renewed inflows into spot ETFs.
In contrast, the S&P 500 has struggled to surpass its 200-day moving average, reflecting market apprehension regarding riskier equity investments.
Despite the overall sentiment improvement, Nansen cautioned that much of this optimism may already be factored into current prices, suggesting a need for new catalysts, particularly in trade policy, to sustain upward momentum.
The post BlackRock’s Bitcoin ETF Surpasses Gold Rival With $6.96B in Inflows This Year appeared first on Finance Newso.
