This is the first time that gold has hit $4,000, and this has cemented investors fears with regard to fiat erosion and government debt. There is a lure into scarce commodities, such as gold, Bitcoin, and commodities, which is driving capital out of bonds and cash, in this so-called debasement trade. The institution demand of hard assets is surging with the US money supply increasing 44 percent since 2020 and real yields failing.
Bitcoin ETFs Ride the Wave
Spot Bitcoin ETFs alone attracted a record inflows of $3.5 billion in net inflows in just the past week to add to a more general influx of $5.9 billion in crypto funds. Such figures indicate that the same drivers behind the rise in gold are quietly driving demand to Bitcoin. Especially through ETFs that eliminate the custody friction on large allocators.
Green Light Given by Financial Giants.
Morgan Stanley and Wellfargo have unlocked ports to allow financial advisors to invest in crypto as part of the portfolios. All these platforms control more than a 4 trillion and new direction is likely to record tremendous Q4 inflows. Advisors like to show off the best of the best- in 2025, it will be Bitcoin and gold.
New Year, New Record?
Bitcoin trades above 125,000, and its momentum is in favor of the same. ETFs have already gathered $25.9 billion this year and may exceed the record of 2024 of 36 billion. The hedge story is corroborated by the break out of Gold. Assuming that additional investors will use Bitcoin as digital gold, ETF inflows would skyrocket.
