Bitcoin ETFs Gaining Ground, Could Soon Surpass Gold—Analyst

Gold shed billions in March. Bitcoin quietly pulled in more than a billion.

Flows Tell A Diverging Story

US spot Bitcoin exchange-traded funds attracted $1.32 billion in net inflows last month, even as US-based gold ETFs bled $2.92 billion in net outflows over the same period.

The gap caught the attention of Bloomberg ETF analyst James Seyffart, who said the trend reflects something bigger than a monthly blip — it points to Bitcoin’s growing appeal as a multi-purpose portfolio asset.

“There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio,” Seyffart said on the Coin Stories podcast, published to YouTube on Friday.

Gold’s rough March was punctuated by a single brutal day. On March 4, GLD — the largest US gold-backed ETF — recorded a $3 billion outflow, its steepest single-day withdrawal in over two years.

Data from the Bank for International Settlements, cited in mid-March reports, showed Wall Street had been accelerating its gold selling over the prior four months, even as retail buyers were scooping up the metal at triple the pace seen six months earlier.

Bitcoin Plays Multiple Roles, Gold Plays One

Seyffart’s argument rests on a simple contrast. Gold is widely seen as a hedge against inflation and currency debasement — and not much else.

Bitcoin, according to the analyst, gets used differently by different investors. Some buy it as a store of value, similar to gold. Others treat it as a growth asset or a way to bet on liquidity conditions. Still others hold it as a form of digital property or capital.

“It can be hot sauce in a portfolio,” Seyffart said, describing how Bitcoin’s volatility and return potential can juice overall performance for investors willing to carry the risk.

Based on that reasoning, Seyffart said his outlook is straightforward: Bitcoin ETFs will eventually surpass gold ETFs in total assets under management.

US gold ETFs currently hold far more in AUM than their Bitcoin counterparts, so that would represent a significant shift in where big money parks itself.

Contrasting ETF flows haven’t stopped Bitcoin and gold from falling in tandem. Bitcoin was trading at $66,889 at the time of the original report, off 7.35% over the prior 30 days. Gold was at $4,674, down 8.20% over the same stretch.

According to Chris Kuiper, gold and Bitcoin have a history of alternating leadership. With gold outperforming in 2025, Kuiper said it would not be surprising if Bitcoin stepped up next.

Whether that rotation plays out remains to be seen. But March’s fund flow data suggests at least some investors are already making their move.

Featured image from Meta, chart from TradingView