Net Inflows Into Largest Gold ETF Surge Amidst Falling Stocks and Crypto Prices – Featured Bitcoin News

The net inflows to SPDR Gold shares surpassed $1.63 billion for the first time since 2004. This is the record high ever set. This surge in net inflows to one of the most important gold exchange-traded funds, SPDR Gold Shares (ETF), comes amid falling stock and cryptocurrency values.

Investors are more bullish about gold

One of the world’s largest gold ETFs, SPDR Gold Shares, recently recorded a net inflow of $1.63 billion, the highest since its listing in 2004, a report has said. Friday’s record inflow, which comes as stock and crypto prices have been tumbling, could be a sign that investors are becoming more bullish on gold, the report suggested.

This surge in net ETF inflows to SPDR Gold Shares amounts to 27.6 tons, according to Bloomberg. The jump in SPDR Gold Shares’ net ETF inflows comes as the world is bracing for the resumption of interest rate hikes by the U.S. Federal Reserve, which according to a previous Bitcoin.com News report, looks to be heading toward ending major asset purchases.

In addition to the U.S. Federal Reserve’s impending rate hikes, demand for gold has been fueled by the growing global tensions over Russia’s rumored plans to invade Ukraine.

Gold’s Static Price

However, despite the rise of net inflows into the gold ETF, analyst Daniel Briesemann is quoted in the Bloomberg report expressing surprise at the precious metal’s failure to profit from the strong ETF inflows.

“We find it very surprising that the gold price has failed to profit from the robust ETF inflows. This week will presumably see market participants focusing mainly on the meeting of the U.S. Fed,” Briesemann, an analyst at Commerzbank, is quoted explaining.

While viewed by many as a reliable alternative store of value, gold was unable to shield holders from the effects of the U.S. Federal Reserve’s quantitative easing after its price ended 2021 nearly four percent lower than it started. However, bitcoin and other cryptos ended the year in double-digit growth or greater.

Some investors have begun to look at the precious metal again, even though stocks and cryptocurrencies are continuing their slide. As of the writing of this report, gold was trading at $1,842 an ounce. That’s almost one percentage higher than its December 31 value of $1,828.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.