Wall Street Chooses Bitcoin Over Gold as IBIT Flips GLD in YTD Flows

BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has surpassed the SPDR Gold Trust (GLD) in year-to-date (YTD) inflows for the first time, marking a pivotal moment in institutional portfolio preferences.

This milestone has come even as the price of gold hit historic highs and accumulated a YTD return of 23.07%.

A Battle of Safe Havens

The early months of 2025 witnessed geopolitical turbulence and a weakening U.S. dollar, instigated by President Donald Trump’s new trade policies. Such an environment has traditionally bolstered gold, long seen as a safe-haven asset for risk-averse investors.

However, this year, BTC has seemingly defied the script, with BlackRock’s spot Bitcoin exchange-traded fund (ETF) registering inflows of $6.96 billion compared to GLD’s $6.51 billion.

According to data shared by Bloomberg analyst Eric Balchunas, IBIT now ranks sixth among all U.S. ETFs in YTD flows. It achieved this feat despite posting a modest 4.03% return, a fraction of gold’s recent rally, which saw its price shoot to an all-time high of $3,435 per ounce.

$IBIT took in another half a billion yest, extending inflow streak to 15 days and is now 6th in YTD flows, passing $GLD which is notable bc IBIT is only up 4% vs GLD having the run of its life. To take in more cash in that scenario is really good sign for long term, and inspires… pic.twitter.com/9HWqYxtyJ4

— Eric Balchunas (@EricBalchunas) May 6, 2025

Some market watchers believe this fund flow divergence is a sign of the growing conviction among institutional investors that Bitcoin is no longer just a speculative asset but a long-term portfolio staple.

“Wall Street can’t get enough of Bitcoin,” tweeted Zaheer of Split Capital, highlighting the enthusiasm for the cryptocurrency among fund managers.

Bitcoin’s Institutional Surge

The uptick in Bitcoin’s institutional appeal coincided with regulatory breakthroughs such as the rollback of the contentious SAB 121 previously issued by the U.S. Securities and Exchange Commission (SEC).

The bulletin had made it almost impossible for banks to offer crypto custody services, and rescinding it allowed mainstream financial giants to seize the opportunity and strengthen their grip on the Bitcoin space.

Towards the end of last month, IBIT recorded its second-largest single-day inflow ever, pulling in $970.9 million on April 28 alone. Such performances helped push its total Bitcoin holdings past the symbolic 600,000 BTC threshold, and it now holds three times more Bitcoin than its closest competitor, Fidelity’s FBTC.

Meanwhile, in the markets, the world’s most valuable crypto asset saw its price nudge upwards by nearly 3% in the last 24 hours. At the time of writing, it was trading at $97,026, having spent the day moving between a high of $97,511 and a low of $93,592.

The weekly charts show a 2.2% uptick, edging out the broader market, which grew 1.9% in that period. However, BTC looks better across longer time frames, with a 29% jump in the last 30 days and a 52% year-over-year increase.