Billionaire Ken Griffin Buys an Index Fund That's Crushing Bitcoin, Nvidia, and the S&P 500 in 2025

Core Viewpoint - The SPDR Gold Shares ETF has significantly outperformed Bitcoin, Nvidia, and the S&P 500 in 2023, indicating a strong demand for gold as a safe-haven asset amid economic uncertainties [1][2]. Group 1: Performance Comparison - The SPDR Gold Shares ETF has returned 60% year to date, while Nvidia has returned 32%, Bitcoin has declined by 2%, and the S&P 500 has gained 16% [2]. - Citadel Advisors, led by Ken Griffin, has outperformed the S&P 500 by 7 percentage points over the last three years, showcasing the hedge fund's strong performance [1]. Group 2: Hedge Fund Activity - Ken Griffin initiated a position in the SPDR Gold Shares ETF in the third quarter, and Citadel also holds call options on the fund, making it the fourth-largest position in their portfolio [3]. - Other hedge fund billionaires, such as Israel Englander and Paul Tudor Jones, have also increased their exposure to gold during the same period, indicating a trend among institutional investors [4]. Group 3: Gold Market Dynamics - The SPDR Gold Shares ETF allows investors to participate in the gold market without the logistical challenges of buying and storing physical gold [4]. - Gold has historically shown a low and negative correlation to many financial asset indexes, providing a hedge during market downturns, as evidenced by its performance during the last three bear markets [5]. Group 4: Demand Factors - Demand for gold typically increases during economic distress, with concerns about inflation and recession driving investor interest [8]. - Goldman Sachs projects that gold prices could reach $4,745 per troy ounce in the next 12 months, suggesting a potential upside of 13% from the current price of $4,200 per troy ounce [9]. Group 5: Economic Influences - Economic policies, such as tariffs imposed by the Trump administration, have raised concerns about economic growth and contributed to increased demand for gold [10].