‘Debaser Trade’ Strengthens as Bitcoin and Gold ETFs See Record Flows
Investor interest in assets resistant to government debasement is driving strong gains in Bitcoin and precious metals.
The debasement trade, also known as the sound money or hard asset trade, remains in full swing. Bitcoin (BTC) has surpassed $120,000, approaching its all-time high of $124,000, while gold has climbed nearly 50% year-to-date, trading just below $3,900 and hitting new record highs almost daily.
Exchange-traded fund activity highlights the growing momentum. On Thursday, BlackRock’s iShares Trust (IBIT) and the SPDR Gold ETF (GLD) ranked among the top 10 most traded ETFs, a rare occurrence, according to Bloomberg Senior ETF analyst Eric Balchunas. GLD recorded $4.88 billion in volume, ranking fourth, while IBIT posted $3.21 billion, placing seventh. The SPDR S&P 500 ETF (SPY) led overall volume with over $26 billion.
“Everyone wants in on the debaser trade, I guess,” Balchunas commented.
Comedian and sound-money advocate Dominic Frisby told CoinDesk that Bitcoin and gold share a key trait: they cannot be printed by governments.
Frisby said: “Bitcoin is within a few percent of all-time highs. Gold is at record levels. Silver is nearing its peaks. Confidence in fiat seems to be eroding. The major monies that are immune to government debasement are having their moment in the sun.”
Silver has mirrored gold’s rally, trading just below $48, its third-highest level behind 1980 and 2011 peaks. Notably, in both historical cases, silver’s peak coincided with gold’s. If history repeats, silver’s parabolic run could signal a gold peak, potentially creating further upside opportunities for Bitcoin.
