Capital Rotates? Biggest Gold ETF Faces Big Outflow as BTC Funds Recover

Meanwhile, a famous analyst said that gold is “not a serious competitor to Bitcoin” in relation to the speed of ETF adoption.

While it remains the preferred safe-haven asset in times of heightened uncertainty, gold has seen its fair share of investor exodus, boosted by the largest US ETF tracking its performance last week.

At the same time, BTC-related currencies ended the same week in the green, although Thursday and Friday are deep and red.

GLD Sees Largest Outflow in Years

The SPDR Gold Trust (GLD) is the largest ETF focused on the precious metal, with AUM of more than $174 billion as of March. To demonstrate its dominance in the gold market, the second in line, iShares Gold Trust (IAU), has three times less AUM ($64 billion).

Data shared by Kobeissi Letter, however, shows that GLD experienced a large withdrawal on Wednesday, with $3 billion leaving the fund. This “exceeds any previous large daily inflow seen in the past 2 years by +200%,” analysts said.

Meanwhile, the price of the metal fell 4.4% on the day, which was its biggest correction since the January 30 crash when it fell more than 11%.

“This all follows global gold ETFs pulling in +$5.3 billion in February and +$18.7 billion in January, marking the 9th consecutive month of inflows and the best 2-month start to the year on record,” their post read.

The analyst concluded that investors took profits after the metal’s “historic rally”.

No Comparison With Bitcoin?

While the gold fund was out on Wednesday, the Bitcoin ETFs space recorded its best day since February 25, with total inflows of $461.77 million. Monday ($458.19 million) and Tuesday ($225.15 million) were also in the green, but the week ended on the wrong foot, with net outflows of $227.83 million on Thursday and $348.83 million on Friday.

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However, the weekly gross was very high as the film pulled in a total of $568.45 million. This makes it two consecutive weeks in the green after five weeks of violence in which more than $2 billion was withdrawn.

Although these numbers are much lower than those quoted in one gold fund, they still show that BTC is growing in institutional acceptance. In fact, Crypto Rover has posted an interesting chart showing that BTC ETFs have enjoyed their first few years outperforming gold funds in terms of revenue and net worth.

Adoption of Bitcoin ETF vs Gold ETF…

Gold is not a serious competitor to Bitcoin. pic.twitter.com/EY1EU2mFIn

– Crypto Rover (@cryptorover) March 7, 2026