Investors are abandoning the "either-or" logic and are instead placing bets on both gold and Bitcoin simultaneously.
According to a Bloomberg report on Thursday, over the past five trading days, ETFs tracking these two asset classes have collectively attracted approximately $7 billion in inflows, setting a historical record and propelling some of the largest gold and Bitcoin funds to the top of this week's list of U.S. ETF inflows.
The immediate catalyst for this wave of capital was U.S. Treasury Secretary Yellen's announcement of plans to at least double the scale of long-term Treasury buybacks. This news initially pushed down Treasury yields and the U.S. dollar while driving up the prices of gold and Bitcoin, providing a new reason for investors seeking assets "beyond the easy reach of government hands" to enter the market. Currently, gold has risen about 13% this month, recently breaking above $4,600 per ounce; Bitcoin has also reclaimed the $80,000 level.
The simultaneous rise of both assets marks the return of the "debasement trade"—where the appeal of scarce assets with limited supply that exist outside the government's monetary system increases against the backdrop of intensifying fiscal pressures and loosening financial conditions. The rekindling of this logic is reshaping investors' asset allocation preferences.
Record Inflows: Gold and Bitcoin ETFs Both Make Top 10 Weekly List
According to data compiled by Bloomberg, over the past five trading days, gold and Bitcoin ETFs together recorded net inflows of approximately $7 billion, a new historical high.
Among them, State Street Global Advisors' SPDR Gold ETF attracted nearly $3.4 billion, ranking near the top of this week's U.S. ETF inflow list, second only to a handful of funds including the Vanguard S&P 500 ETF (VOO). BlackRock's iShares Bitcoin Trust ETF (ticker: IBIT) recorded $1.5 billion in inflows, also making the weekly top ten.
Looking at year-to-date data, the $155 billion GLD still shows net outflows of about $2.8 billion; while the $60 billion IBIT has remained relatively stable, with net inflows of approximately $830 million over the same period.
Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, said: "What's really notable isn't just the size of the inflow, but the momentum behind it—demand is not just positive, it's accelerating." Analysts point out that this momentum suggests investors are actively correcting their previously underweight positions.
Narrative Rekindled: Fiscal Anxiety and Scarce Asset Logic Converge Again
The core driver of this round of market movement is growing concern over U.S. fiscal sustainability.
Gautam Chhugani, Senior Analyst for Global Digital Assets at Bernstein, wrote in a research report: "The 40-year declining rate cycle seems to have come to an end. As sovereign debt climbs to historically high levels, governments are facing increasing pressure from debt servicing. Investors holding scarce assets like Bitcoin may benefit—these assets cannot be easily increased or diluted."
Gold benefits from this logic due to its traditional safe-haven status, while Bitcoin, with its fixed cap of 21 million coins, is seen as a potential harbor against government policy shocks. Bloomberg Intelligence analyst Balchunas noted that this rally has returned Bitcoin to its core narrative: "This is exactly what Bitcoin was born to do, it's its fundamental story."
Billionaire Ray Dalio has also stated that investors should reduce bond holdings, allocate up to 15% of assets to gold, and put a "small amount" into Bitcoin to hedge against U.S. debt crisis risks.
Despite the strong inflow momentum, not all analysts are confident in the persistence of this logic.
Hardika Singh, Economic Strategist at Fundstrat, believes the momentum of the debasement trade is waning, and stocks might be a more reliable hedge than gold or Bitcoin. She wrote in a report: "Widening deficits are certainly a problem, but the 'lack of a solution' ironically becomes a solution itself—investors will eventually have to accept that reality. In that scenario, gold and Bitcoin could certainly continue to rise, but I don't believe the driving force will come solely from the debasement narrative."
