Gold Takes the Debasement Trade in 2025, Beating Bitcoin Even as ETFs Resist:
The big winner of the 2025 debasement trade: Gold has gained 65% of value this year, while both gold and Bitcoin had begun the year with gains of about 30% through August. Since then, the value of gold has continued to rise while the value of Bitcoin corrected with a drop of 7% this year and 36% since the record high hit in October.
Despite the price weakness in Bitcoin, the trend in ETF flows is a different story altogether. The U.S. Bitcoin ETPs were holding 1.37 million Bitcoin at the October peak and are holding 1.32 million at the current level, suggesting that most selling was not through ETP holders. The Bitcoin ETP flows even topped the gold ETP flows in 2025 levels despite the price correction.
In sum, gold had one of its strongest years ever, entrenching its position as a safe-haven asset, and Bitcoin proved its resilience in ETF investments despite market fluctuations.
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