Record ETF flows indicate growing interest in 'debasement trade' over AI
Bloomberg senior ETF analyst Eric Balchunas notes that gold and Bitcoin ETFs have seen record inflows, signaling a shift toward the so-called 'debasement trade.' This trend is overtaking earlier enthusiasm for artificial intelligence (AI) investments. SPDR Gold Shares (GLD) and BlackRock's iShares Bitcoin Trust (IBIT) led this movement, ranking among the top 10 most-traded ETFs in recent weeks. The shift reflects investor concerns about government debt, deficits, inflation, or policies that could weaken the U.S. dollar. Recent actions by the Treasury Department to improve bond market liquidity and a rise in U.S. government debt above $40 trillion have contributed to this narrative. Bitcoin surged past $80,000 on August 25 as investors flocked toward hard assets.
Topics: AI investment shift Bitcoin debasement trade ETF activity gold