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Gold and Bitcoin Shining This Year as ETFs Drive Diversification
See It Marketยท2025-07-23 18:17

Core Insights - Bitcoin and gold have both experienced a year-to-date return of 28% as of July 16, 2025, indicating a trend towards diversification in investment portfolios [1][8] - The rise in international stocks, a positive return in the bond market, and gains in alternative assets have contributed to this diversification trend [1] Investment Themes - Investors are increasingly turning to ETFs to gain exposure to alternative assets like gold and bitcoin, as well as niche altcoins and precious metals [2] - Total assets under management (AUM) in gold ETFs surpassed $170 billion in April 2025, while cryptocurrency ETFs reached $123.9 billion by April 30 [3] Market Comparisons - Gold's market cap stands at approximately $22.6 trillion, significantly larger than Bitcoin's market cap of around $2.4 trillion [4] - The SPDR Gold Shares ETF (GLD) is the leading gold ETF with $102 billion in AUM, while the iShares Gold Trust (IAU) has $48 billion [5] ETF Performance - The iShares Bitcoin Trust ETF (IBIT) is projected to exceed $100 billion in AUM soon, having reached $86 billion by mid-July [7] - IBIT has grown at a remarkable pace, hitting $80 billion in just 374 days, significantly faster than previous records [7] Other Asset Performance - Other metals like platinum and palladium have seen substantial gains, with platinum up over 50% and palladium up 40% in 2025 [9] - Ether has also rebounded, moving back into positive territory after a significant decline earlier in the year [10] Emerging Trends - The crypto market is witnessing innovations and new products, with a focus on Solana and leveraged products for cryptocurrencies like XRP [11] - Active ETF AUM is on the rise, complementing the growth of low-cost index funds, indicating a shift in investment strategies [13] Conclusion - The year 2025 has been characterized by volatility, driving strong performances in gold and bitcoin, with central banks actively purchasing gold and a "buy the dip" mentality in the crypto market [14]