‘Debaser Trade’ in Full Force as Bitcoin and Gold ETFs See Surging Demand

Investor appetite for assets immune to government debasement is driving record flows and surging prices across Bitcoin and precious metals.

The debasement trade, also referred to as the sound money or hard asset trade, remains in full swing. Bitcoin (BTC) has climbed above $120,000, approaching its all-time high of $124,000, while gold has gained nearly 50% year-to-date, trading just below $3,900 and hitting fresh record highs almost daily.

Exchange-traded fund activity underscores the strength of this trend. On Thursday, both 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 posted $4.88 billion in volume, making it the fourth most traded ETF, while IBIT registered $3.21 billion, ranking seventh. The most traded ETF remained the SPDR S&P 500 ETF (SPY) with over $26 billion in volume.

“Everyone wants in on the debaser trade, I guess,” Balchunas commented.

Comedian and sound-money advocate Dominic Frisby told CoinDesk that both Bitcoin and gold share a fundamental trait: they cannot be printed by governments.

Frisby said: “Bitcoin’s within a few percent of all-time highs. Gold’s at all-time highs. Silver’s closing in on its peaks. It’s almost as if faith in fiat is eroding. While nothing lasts forever, these major monies that are immune to government debasement are having their moment in the sun.”

Silver has followed gold’s lead, trading just below $48, its third-highest level behind the peaks of 2011 and 1980. Notably, in both of those years, silver’s top coincided with gold’s. If history rhymes, silver’s parabolic run could signal a peak in gold, potentially paving the way for further upside in Bitcoin.