Gold ETF Inflows Hit Three-Year High as PAXG, XAUT Outperform Wider Crypto Market
Gold ETF Inflows Hit Three-Year High as PAXG, XAUT Outperform Wider Crypto Market
Gold-backed cryptocurrencies like PAXG and XAUT rose significantly so far this year, mirroring a spike in ETF demand.
- PAXG and XAUT are up more than 23% year-to-date, matching gold’s rally and outperforming the wider crypto market.
- Tokenized gold offers crypto investors exposure to real-world assets with blockchain-based liquidity.
- Demand for gold ETFs hit a three-year high in Q1, signaling a broader flight to safety
Gold-backed cryptocurrencies such as PAXG and XAUT have seen a significant increase in value this year, reflecting a surge in demand for ETFs.
Both PAXG and XAUT have surged by over 23% since the beginning of the year, aligning with the upward trend of gold prices and surpassing the performance of the broader cryptocurrency market. These digital tokens provide crypto investors with exposure to tangible assets while offering the benefits of blockchain-based liquidity.
The rise in demand for gold ETFs reached a peak not seen in three years during Q1, indicating a growing preference for safe-haven investments. This renewed interest in gold is attracting crypto investors who are turning to tokenized versions of the precious metal for their combined price stability and digital convenience.
As tensions between the U.S. and China escalate, uncertainty is driving investors towards gold-related assets perceived as safer options. Inflows into gold ETFs hit 226.5 tonnes in the first quarter of this year, marking the highest level since early 2022, with a substantial portion originating from North America.
