Key Takeaways:
- BlackRock’s iShares Bitcoin Trust (IBIT) and the SPDR Gold ETF (GLD) ranked among the top 10 most traded U.S. ETFs on October 3 an unusual occurrence.
- The surge reflects mounting demand for “hard assets” as investors hedge against inflation and currency weakness.
- Analysts attribute the trend to the so-called Debaser Trade, which is an indicator of increasing support to both Bitcoin and gold in volatile markets.
Surprisingly, both the gold and Bitcoin ETFs found themselves in the top 10 U.S. ETFs by trading volume this week, and that is virtually unheard of when it comes to both safe-haven asset categories converging. The trend highlights the changing investor mood as the economic uncertainty drives the desire of the stores of value in the non-fiat money.
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ETFs See Rare Volume Spike
According to Bloomberg ETF analyst Eric Balchunas, GLD and IBIT surged into the top 10 by daily trading volume on October 3. Such a dual appearance is highly unusual in a ranking typically dominated by equity funds tied to indexes like the S&P 500.
- SPDR Gold Shares (GLD), the world’s largest gold-backed ETF, recorded billions in trading volume and ranked among the very top.
- iShares Bitcoin Trust (IBIT), BlackRock’s spot Bitcoin ETF, also broke into the list signaling a powerful wave of institutional and retail flows into crypto.
Balchunas called the move part of the “Debaser Trade” shorthand for investors shifting into assets that resist monetary debasement, such as gold and Bitcoin.
The Debaser Trade Explained
The “Debaser Trade” refers to positioning in assets like gold and Bitcoin that hedge against fiat currency erosion. With inflation pressures still looming and central banks juggling high interest rates, investors are seeking alternatives to cash and bonds.
- Gold has long been the traditional safe haven, reaching near-record levels this year as global demand spikes.
- Bitcoin, often dubbed “digital gold,” offers a similar scarcity profile with a modern, decentralized twist.
By appearing together in the top ETF volume ranks, GLD and IBIT underscore a dual investor strategy: combine the time-tested safe haven with the disruptive digital one.
Silver Enlisted into the Hard Asset Rally
Interestingly, the silver too is also soaring towards the multi-year highs, and it is almost rejoining the parabolic spurts of 1980 and 2011, near 48. There have been periods when silver has reached its highest points at the same time as the golden periods, which have often been the turning point of a hard-asset cycle.
Should this trend continue, the analysts say gold can be close to its ceiling when Bitcoin possibly has more to gain. This deviation may contribute to the digital gold story and attract more flows into the IBIT.
Trading Implications
To traders, ETFs volumes are usually precursors of underlying assets volatility. When money such as IBIT draws billions of dollars in turnover daily, then the implication is speculative positioning which is able to increase price movements.
How to Find Opportunities in Bitcoin ETFs
Premium/Discount to NAV: The trading of IBIT in relation to net asset value is a good way to monitor the value of IBIT to detect arbitrage.
Correlation With Equities: After risk-on periods with increased correlation between Bitcoin and Nasdaq tech stocks, Bitcoin has decoupled in times of risk-off and has access to hedging.
Technical Levels: BTC is close to its all-time high and therefore the levels of resistance become important. The breakout may cause momentum buying, and the rejection may result in a severe pullback.
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A Shift in Market Psychology
The fact that Bitcoin is currently listed together with gold in the list of ETFs indicates a more significant change in the perception of investments in hard assets by investors. Bitcoin is no longer treated as a far-fetched gamble but is actually being mentioned in the context of preserving wealth.
Even longstanding supporters of sound money such as Dominic Frisby opine that the emergence of both gold and Bitcoin points to increased disbelief in the stability of fiat. As he puts it: “People are losing their faith in fiat almost.
This is in line with more macroeconomic issues: increasing debt, the threat of currency debasement, and geopolitical tension. It is on this background that the spike in volume of GLD and IBIT is less of a fluke and more like the orchestrated investment outflux of the investors to alternative forms of stores of value.
