Despite the low return rate, Bitcoin ETFs currently rank among the top six in U.S. fund flows, with analysts predicting that their assets under management will reach three times that of gold within five years.

BlackRock's spot Bitcoin exchange-traded fund (ETF) iShares Bitcoin Trust (IBIT) has seen its inflows surpass SPDR Gold Trust (GLD) for the first time this year (YTD), marking a key moment in institutional portfolio preferences.

Despite gold prices hitting a historic high with a year-to-date return of 23.07%, this milestone has still been achieved.

The Battle of Safe Havens

In early 2025, influenced by President Donald Trump's new trade policies, geopolitical turmoil, and a weakening dollar. This environment traditionally supports gold, which has long been viewed as a safe-haven asset.

However, this year BTC seems to have broken the script, with BlackRock's spot Bitcoin exchange-traded fund (ETF) inflows at $6.96 billion, compared to GLD's inflows of $6.51 billion.

According to data shared by Bloomberg analyst Eric Balchunas, IBIT ranks sixth in year-to-date inflows among all ETFs in the U.S. Although IBIT's return rate is only 4.03%, far from the recent surge in gold prices to a historic high of $3,435 per ounce, it has still achieved this milestone.

Some market observers believe this divergence in fund flows suggests that institutional investors are increasingly confident that Bitcoin is no longer just a speculative asset, but a major component of a long-term investment portfolio.

Zaheer from Split Capital wrote on Twitter: "Wall Street can't get enough of Bitcoin," highlighting fund managers' enthusiasm for cryptocurrency.

Surge in institutional interest in Bitcoin

The institutional appeal of Bitcoin is rising coincidentally with regulatory breakthroughs, such as the controversial withdrawal of SAB 121 previously issued by the U.S. Securities and Exchange Commission (SEC).

The announcement made it nearly impossible for banks to provide cryptocurrency custody services, while the withdrawal of that announcement allowed mainstream financial giants to seize the opportunity and strengthen their control over the Bitcoin space.

At the end of last month, IBIT recorded the second-largest single-day inflow in history, attracting $970.9 million in just one day on April 28. Such performance pushed its total Bitcoin holdings past the symbolic threshold of 600,000 BTC, currently holding three times the amount of Bitcoin as its closest competitor, Fidelity's FBTC.

Meanwhile, on the market, the price of the world's most valuable crypto asset has risen nearly 3% in the past 24 hours. As of the time of writing, its trading price was $97,026, with daily highs fluctuating between $97,511 and $93,592.

The weekly chart shows Bitcoin rising by 2.2%, slightly higher than the market's 1.9% increase during the same period. However, BTC's long-term performance is better, having risen 29% over the past 30 days, a year-on-year increase of 52%.