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Why Is Smart Money Betting on Bitcoin ETFs Over Gold in 2025?

Published by
Vignesh S G

Gold may be outperforming Bitcoin in price this year, but institutional investors are making a big bet on Bitcoin. BlackRock’s iShares Bitcoin Trust (IBIT) has already attracted nearly $7 billion in inflows in 2025, surpassing the SPDR Gold Trust (GLD), the largest gold ETF in the world.

This shift shows that, while gold continues to perform well, institutions are increasingly confident in Bitcoin’s long-term potential.

Gold vs. Bitcoin: 2025 Performance Breakdown

Gold has been on a winning streak in 2025, delivering strong monthly gains:

  • January: +6.59%
  • February: +2.02%
  • March: +8.72%
  • April: +5.22%
  • April 8–21 alone: +14.83%
  • May (so far): +4%

Total YTD Growth: +30.33%

While Bitcoin has had a more volatile year, it’s still performing better than many expected:

  • January: +9.54%
  • February: -17.5%
  • March: -2.19%
  • April: +14.2%
  • May (so far): +3.04%

Total YTD Growth: +3.84%

Clearly, gold is outperforming Bitcoin in terms of price this year. However, the ETF inflow data tells a different story.

Bitcoin ETFs Gaining Momentum

Despite Bitcoin’s less consistent price movement, BlackRock’s iShares Bitcoin Trust has pulled in $6.96 billion in inflows this year. In comparison, the SPDR Gold Trust attracted $6.5 billion. This shows a growing preference for Bitcoin ETFs as a long-term growth option, even as gold remains a traditional safe-haven asset.

Eric Balchunas, an ETF analyst, believes this trend is just beginning. He predicts that Bitcoin ETFs could eventually triple the assets under management of gold ETFS in the next 3–5 years, driven by institutional demand and increasing market confidence.

While gold continues to lead in performance, Bitcoin is steadily gaining institutional trust. The rising capital inflows into Bitcoin ETFs suggest that Bitcoin is no longer considered a fringe asset.

It’s quickly becoming a mainstream financial instrument, favored by institutions looking for long-term growth.

FAQs

Will Bitcoin ETFs surpass gold ETFs in the future?

Analysts expect Bitcoin ETFs to triple gold ETF assets in 3–5 years due to rising institutional demand.

Is gold outperforming Bitcoin in 2025?

Yes, gold has achieved over 30% YTD growth, while Bitcoin’s YTD growth stands at approximately 3.84%.

How much has BlackRock’s iShares Bitcoin Trust (IBIT) attracted in 2025?

As of May 2025, IBIT has pulled in nearly $7 billion in inflows, surpassing the SPDR Gold Trust’s $6.5 billion.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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