Bitcoin sell-off likely played a key role in boosting Gold's appeal
June 8, 2021. Summarized by summa-bot.
Compression ratio: 21.2%. 1 min read.
Investors' appetite for gold increased as they assessed higher inflation and a major price crash in the Bitcoin market.
Meanwhile, physical gold exchange-traded funds (ETFs) recorded its strongest months in May 2021 since September 2020.
In detail, U. S. -based gold ETFs experienced an inflow worth $2. 1 billion.
The European gold ETFs reported $1. 6 billion worth of deposits.
The market strategists projected Bitcoin as a riskier alternative to Gold.
On the other hand, Gold ETFs reported six months of back-to-back outflows until May 2021.
JPMorgan analysts in January 2021 reported that gold ETFs lost about $7 billion in the same period Grayscale Bitcoin Trust (GBTC), a trust operated by New York-based Grayscale Investments, attracted $3 billion.
In May 2021, another JPMorgan report suggested that large institutional investors secured their profits in Bitcoin to seek opportunities in gold.
The statements also appeared as Ruffer Investments, a U. K. -based fund that manages about $33. 95 billion for wealthy individuals and charities, also announced Tuesday that it has unloaded its entire Bitcoin position and has netted $1. 56 billion in profits.