Bitcoin vs gold: ETF flows point to early capital rotation signs

Bitcoin ETF inflows have turned positive as gold ETFs see record outflows after a historic rally. Is capital beginning to rotate from gold to Bitcoin?

Bitcoin (BTC) exchange-traded fund (ETF) flows have turned net positive over the past 30 days, while gold ETF demand has started to slow down after nine straight months of inflows. The shift comes even as gold prices remain elevated and sentiment around Bitcoin continues to cool.

With these contrasting trends in ETF flows and the historical pattern of Bitcoin-to-gold performance cycles, analysts are now examining data that may signal a gradual shift in investor demand between the two assets. 

According to the Kobeissi Letter, the largest US gold-backed ETF, GLD, recorded a $3 billion outflow on Wednesday, the largest daily withdrawal in more than two years. The move followed a 4.4% decline in gold prices, the sharpest drop since the Jan. 30 sell-off.

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