Gold Prices Surge as ETFs See Record Inflows, Boosting Gold-Backed Cryptos
Gold has been on a strong upward trajectory, gaining nearly 11% in 2025 and 43% over the past year, as demand for the precious metal continues to rise.
While spot Bitcoin ETFs saw a record $1 billion in daily outflows yesterday, spot gold ETFs continue to attract strong inflows, reinforcing the metal’s appeal as a safe-haven asset.
Gold ETFs See Largest Weekly Inflow Since 2022
According to data from the World Gold Council, physically backed gold ETFs recorded their biggest weekly inflow since March 2022, adding 52.4 tons ($4.9 billion) in assets. The majority of this demand came from North American investors.
Currently, total gold ETF holdings stand at 3,326 tons, valued at approximately $314 billion.
Despite minor pullbacks, gold is now trading at $2,910 per ounce, benefiting from heightened geopolitical tensions and economic uncertainty, including concerns over potential Trump-era trade tariffs.
Gold-Backed Cryptos Outperform the Market
Gold-backed cryptocurrencies such as Paxos Gold (PAXG) and Tether Gold (XAUT), which are designed to mirror gold’s price, have outperformed the broader crypto market. While the CoinDesk 20 Index shows that the overall crypto market has risen 26% year-over-year, gold-backed tokens have seen even stronger gains.
Investor interest in these digital assets is surging. Data from RWA.xyz indicates that over $25 million worth of commodity-backed tokens were minted this month—the highest monthly volume since December 2022—while $12 million worth were burned.
Gold Supply Remains Tight Despite Growing Demand
While demand for gold continues to climb, supply growth remains limited. World Gold Council data shows that global gold mining production declined by two tons in Q4 2024 compared to the previous quarter. Meanwhile, hedging and recycling activity increased, leading to an overall 1% rise in total gold supply year-over-year.
With steady demand and constrained supply, gold’s bullish momentum appears set to continue, with ripple effects benefiting gold-backed digital assets as well.
