Gold ETF Inflows Hit Three-Year High as PAXG, XAUT Outperform Wider Crypto Market

As conventional gold markets warmth up, crypto buyers are following go well with—flocking to tokenized variations of the valuable metallic that supply each value publicity and digital flexibility.

Gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) have risen 24.15% and 23.7% respectively year-to-date to new all-time highs above $3,300, roughly matching the efficiency of spot gold. Their costs have since receded barely to $3,265 and $3,244, respectively.

While gold-backed cryptocurrencies surged to date this yr, the broader cryptocurrency market has been in a downtrend. Bitcoin (BTC) has misplaced greater than 11% of its worth to date this yr, whereas the broader crypto market has fallen by a little bit over 30%, primarily based on the CoinDesk 20 (CD20) index.

The tokens, that are backed by bodily gold and observe its value, skilled a surge in worth as buyers sought refuge from the uncertainty induced by the escalating U.S.-China commerce conflict.

The transfer echoes a broader return to gold as a safe-haven asset. Inflows into gold ETFs hit 226.5 tonnes within the first quarter of 2025, the very best degree since early 2022, in line with information from the World Gold Council. Nearly 60% of that demand got here from North America.

Similarly, gold-backed cryptocurrencies noticed web token minting of over $42.7 million within the first quarter of the yr, in line with information from RWA.xyz, serving to together with gold’s value appreciation increase their complete market capitalization close to $1.4 billion.