BlackRock’s IBIT Bitcoin ETF Surges Past Gold ETF GLD by 33 Percentage Points Since March

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BlackRock’s IBIT Bitcoin ETF Surges Past Gold ETF GLD by 33 Percentage Points Since March

BlackRock’s spot Bitcoin exchange-traded fund, IBIT, has significantly outperformed the long-dominant gold ETF GLD since March, according to data shared by Bloomberg senior ETF analyst Eric Balchunas. The performance gap has widened to 33 percentage points, marking a notable shift in investor preference between digital assets and traditional safe-haven commodities.

Inflows vs. Outflows: A $13 Billion Divergence

Balchunas highlighted on X (formerly Twitter) that IBIT has attracted approximately $4.2 billion in net inflows over the period, while GLD experienced roughly $9 billion in net outflows. This $13 billion gap underscores a broader rotation in capital allocation among institutional and retail investors, who appear to be reassessing the relative value of bitcoin versus gold as a store of value.

The data, which covers the period from early March through late May, reflects a sustained trend rather than a short-term spike. IBIT, which launched in January 2024, has rapidly become one of the most actively traded ETFs in the U.S. market, drawing significant attention from both crypto-native investors and traditional portfolio managers seeking exposure to bitcoin without direct custody risks.

Why This Shift Matters for Investors

The outperformance of IBIT relative to GLD carries broader implications for asset allocation strategies. Gold has historically been viewed as a hedge against inflation and economic uncertainty, while bitcoin is increasingly being framed as a digital alternative—often called ‘digital gold’ by proponents. The current data suggests that a growing cohort of investors is voting with their capital in favor of bitcoin’s liquidity, portability, and perceived upside potential.

However, analysts caution that the comparison is not entirely apples-to-apples. GLD, launched in 2004, has a long track record and remains one of the largest commodity ETFs by assets under management, with over $60 billion in AUM. IBIT, while growing rapidly, started from a much smaller base. The percentage-based performance gap is striking, but absolute flows still reflect a market in transition rather than a complete replacement of gold by bitcoin.

Expert Perspective: Balchunas on the Trend

Eric Balchunas, a widely followed ETF analyst at Bloomberg Intelligence, has been tracking the performance of spot bitcoin ETFs closely since their approval by the SEC in January 2024. In his post, he described the 33-point performance gap as ‘notable’ and pointed to the divergence in flows as evidence of changing investor sentiment. He did not predict whether the trend would continue, but noted that the data speaks for itself.

Balchunas’s analysis is consistent with broader market observations: bitcoin has rallied sharply in 2024, driven by institutional adoption, the launch of spot ETFs, and anticipation of the April halving event. Gold, meanwhile, has faced headwinds from a strong U.S. dollar and higher interest rates, which reduce the appeal of non-yielding assets.

Conclusion

The performance gap between BlackRock’s IBIT and the gold ETF GLD since March reflects a meaningful shift in investor preferences, with bitcoin gaining ground as a portfolio asset. While gold retains its status as a traditional safe haven, the inflows into spot bitcoin ETFs suggest that digital assets are carving out a permanent place in mainstream investment strategies. Investors should monitor these trends closely, as they may signal longer-term changes in how markets value alternative stores of value.

FAQs

Q1: What is IBIT?
IBIT is BlackRock’s spot Bitcoin ETF, which directly holds bitcoin and trades on the Nasdaq. It launched in January 2024 following SEC approval of multiple spot bitcoin ETFs.

Q2: How does IBIT compare to GLD in terms of size?
GLD, the SPDR Gold Trust, has over $60 billion in assets under management and a 20-year track record. IBIT has grown rapidly but started from a smaller base, with AUM currently in the tens of billions.

Q3: Should investors switch from gold to bitcoin based on this data?
Not necessarily. The data shows a performance divergence over a specific period, but gold and bitcoin have different risk profiles, volatility levels, and historical track records. Investors should consider their own risk tolerance, time horizon, and portfolio diversification needs before making allocation decisions.

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