Bitcoin and Gold ETFs Lead Volume Charts Amid Full-Force ‘Debaser Trade’

‘Debaser Trade’ Surges as Bitcoin and Gold ETFs Draw Record Flows

Investor demand for assets resistant to government debasement is powering strong gains in Bitcoin and precious metals.

The debasement trade, also called the sound money or hard asset trade, remains robust. Bitcoin (BTC) has climbed above $120,000, nearing its all-time high of $124,000, while gold has risen nearly 50% year-to-date, trading just below $3,900 and posting fresh record highs almost daily.

ETF activity highlights the trend. On Thursday, BlackRock’s iShares Trust (IBIT) and the SPDR Gold ETF (GLD) both ranked among the top 10 most traded ETFs, a rare occurrence, according to Bloomberg Senior ETF analyst Eric Balchunas. GLD posted $4.88 billion in volume, ranking fourth, while IBIT saw $3.21 billion, ranking seventh. The SPDR S&P 500 ETF (SPY) led overall volume with more than $26 billion.

“Everyone wants in on the debaser trade, I guess,” Balchunas noted.

Comedian and sound-money advocate Dominic Frisby told CoinDesk that Bitcoin and gold share a unique property: neither can be printed by governments.

Frisby said: “Bitcoin’s within a few percent of its all-time highs. Gold is at record levels. Silver is approaching its peaks. It’s almost as if confidence in fiat is weakening. These forms of money immune to government debasement are shining right now.”

Silver has mirrored gold’s rally, trading just below $48, its third-highest level after the 1980 and 2011 peaks. Historically, silver’s top in those years coincided with gold’s peak. If history repeats, silver’s parabolic move could foreshadow a gold peak, potentially creating room for further upside in Bitcoin.