Advertise
Debashree Patra
Debashree Patra
Author
- Apr 14, 2025 07:18 UTC
-
Why Gold ETFs and Tokenized Gold Are Beating Bitcoin in 2025
Tokenized gold, like PAXG and XAUT, is surging, offering a blend of real-world asset stability and cryptocurrency liquidity.
Global economic uncertainty, particularly US-China tensions, is driving significant inflows into both tokenized gold and traditional gold ETFs.
Increased minting of gold-backed tokens and record ETF inflows highlight a broader market shift towards gold.
When markets get shaky, gold usually shines. As investors look for safer ground in a stormy economy, gold is once again proving to be a trusted refuge. But hereโs the twist: itโs not just the traditional yellow metal making waves. Its digital versionsโyes, gold on the blockchainโare catching fire too.
Cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) have jumped more than 23% so far this year, attracting investors looking for a safer place to put their money.
These tokens are linked directly to physical gold, so their prices move with the gold market. Thatโs making them an appealing option during uncertain times.
Letโs dig deeper.
Tokenized Gold Outperforms the Crypto Market
Earlier this year, both PAXG and XAUT reached new all-time highs of over $3,300 before slipping slightly. In comparison, Bitcoin has fallen more than 11% since the start of the year, and the overall crypto market is down over 30%, according to the CoinDesk 20 Index.
With that kind of volatility, more investors are moving toward tokenized gold to help protect their investments.
The recent tariff moves by President Trump have shaken the global economy and hit crypto markets hard. Still, gold has held steady. Gold ETFs have stayed strong during the turmoil, once again proving that gold is still a valuable asset in times of uncertainty.
Real Gold + Crypto Flexibility = Winning Combo
Whatโs making PAXG and XAUT so popular? They offer the security of physical gold along with the ease and speed of trading digital assets. These tokens are backed by real gold stored in secure vaults, but unlike physical gold, they can be traded instantly on the blockchain. That gives investors more flexibility while still offering the trusted value of gold.
With rising tensions between the U.S. and China and growing concerns about the global economy, investors are looking for stability. Gold has always been a go-to in uncertain times, and now its digital versions offer a new way to invest in it with added convenience.
Gold ETFs See Major Inflows Too
Itโs not just the crypto version of gold thatโs growing. Traditional gold investments are booming too. In the first quarter of 2025, gold ETFs saw inflows of 226.5 tonnesโthe highest in three yearsโaccording to the World Gold Council. North America led the way, accounting for nearly 60% of that demand. This shows a larger trend of investors shifting toward safer assets.
Token Minting on the Rise
The growth in tokenized gold is also being supported by a wave of new tokens being created. In the first quarter alone, over $42.7 million worth of PAXG and XAUT were minted, according to RWA.xyz. That pushed the total market value of gold-backed tokens to nearly $1.4 billion.
With both traditional and crypto markets under pressure, tokenized gold is becoming a go-to option for investors looking for securityโwith the added benefit of digital convenience.
Turns out, when the old reliable meets the new unstoppable, investors get the best of both worldsโand maybe a little peace of mind, too.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Tokenized gold is a crypto asset backed by physical gold, offering price stability with the ease of blockchain trading.
Yes 
No 
