World’s Largest Gold ETF Holdings Down 5% Since Bitcoin ETF Launch
1040 sats \ 11 comments \ @kr 8 Apr charts
The world's largest gold ETF has seen their holdings shrink by 5% since Bitcoin ETFs launched in January.
Zooming out further, their gold holdings are down 45% since their 2011 peak.
I wonder how much of the 45% decline is attributable to investors learning about Bitcoin and leaving gold as a result…
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202 sats \ 0 replies \ @anon 8 Apr
Gold has been getting pulled out of GLD and sent to Asia. You have to remember, until recently HSBC was the custodian, so who knows what fuckery was going on in London.
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93 sats \ 4 replies \ @gmd 8 Apr
So their holdings are going down even though the price of Gold is going up?
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99 sats \ 2 replies \ @m00ninite 8 Apr
This kinda makes sense. People like gold as a stabilizer, right? If the price goes up, they'll want to rebalance
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229 sats \ 1 reply \ @freetx 8 Apr
In all probability yours is the right explanation. However it also occurs to me that I wonder if the competition against BTC ETFs is putting pressure on the GLD issuers to play less rehypothecation games. I notice that both Silver and Gold has been on a tear since Jan.
Perhaps they realize that GLD needs to compete.
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99 sats \ 0 replies \ @kr OP 8 Apr
there is also a bit of fee pressure, some of the btc etfs have fees of 0.2% while gld is 0.4%
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99 sats \ 0 replies \ @kr OP 8 Apr
yup, exactly
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75 sats \ 2 replies \ @Undisciplined 8 Apr
If it is investors showing a preference for Bitcoin over Gold as an inflation hedge/store of value, that would be pretty fascinating. That would mean Bitcoin is already significantly eating into gold's monetary premium, as it has been eating into silver's for several year already.
When I was playing around with the Nakamoto Simulator #474759, I assumed gold would maintain it's monetary premium for several more decades.
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50 sats \ 1 reply \ @kr OP 8 Apr
part of me wonders whether investors may be leaving the ETF and taking custody of gold, but I have no real information to suggest that is the case
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75 sats \ 0 replies \ @Undisciplined 8 Apr
I don't know how much business Monetary Metals is doing but if you believe you're deposits are safe, it's clearly superior to holding a gold ETF. Maybe some people are moving into that.
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35 sats \ 0 replies \ @Satosora 8 Apr
As much as people want to say bitcoin is the digital gold.... Gold isnt ever going to go anywhere. Everyone knows that it isnt something that can be printed.
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5 sats \ 0 replies \ @IamSINGLE 9 Apr
Gold is a beast. These kind of charts don't make any sense for Gold or for Bitcoin. This is the graph that represents a company that provides GOld Etfs nothing else. The value declining is not Gold but the interest of investors in the company may be.
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