[Nuggets] Bitcoin Gets Clobbered. Gold Standing Tall.

Any time you see mutual fund companies and ETFs roll out a whole bunch of funds on a narrow niche investment in a short period of time, it’s a good idea to keep your hand on your wallet.

2024 saw a massive flood of ETFs devoted to tracking the bitcoin spot price. 

At the time, it looked like bitcoin couldn’t lose.

That’s exactly the time when you should be prepared for any given asset class to lose.

Shares of the largest bitcoin-focused exchange traded funds, including iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin (FBTC) and Grayscale Bitcoin Trust (GBTC), have lost an average of 49% compared to their recent 52-week highs.

They’ve also been hemorrhaging cash as well as experiencing capital losses: Investors have yanked ~$4 billion from bitcoin ETFs in the last three months. The capital outflows, of course, puts further selling pressure on bitcoin.

Roxetta Islam, head of investment and research for TMX VettaFi, attributes the losses to a general risk-off investment climate.

That’s when gold prices usually soar. Which is exactly what we’ve seen over the same time period, with gold prices exhibiting strong and steady gains since 2024… and critically, no significant losses over the last decade. 

Over the long run, out of all the “alt” assets the bros keep hawking, gold is still the greatest of all time.

Thanks for reading, and stay tuned for more!

John E.
Wealth Money Catalyst

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