Crypto

Gold ETF Shows Biggest One-Day Contraction in More than 4 Years

Gold is losing its appeal, as bitcoin proponents talk about over and over again. But crypto enthusiasts seem to be talking about more than that; rather, it happens.

The latest Bloomberg data shows that ETF gold holdings have declined in one day since November 2016. An Exchange Traded Fund (ETF) tracks assets, commodities, or indices that can be bought or sold on a scholarship like a regular fund. Warehouse.

Total stocks reportedly fell from 23.5 tonnes to 3,058 tonnes, the lowest level since May last year.

This makes sense given that the spot gold price is around $ 1,770 an ounce, which is a downtrend as it hit a new all-time high of $ 2,075 an ounce last August.

Compared to the 6.50% gold reading this year, bitcoin, also known as “digital gold”, has gained 88% in value since the beginning of the year, while still falling more than 16% from its ATH of nearly $ 65,000.

“Bitcoin is stealing the glow of gold,” notes Mike McGlone of Bloomberg. “Accelerating Trends of Decarbonization, Electrification and Digitization”.

Even for the largest gold ETF, SDPR Gold Shares (GLD), its assets under management (AUM) fell from $ 84.24 billion in August to $ 58 billion, last seen in May 2020.

This happened despite the fact that “we are in the bubble of everything”, in which we are seeing an increase in asset inflation.

This bubble can be largely attributed to a single trend, QE, which is driving asset prices higher, said Travis Kling, head of the Ikigai fund.

As the Federal Reserve continues to add trillions of dollars to the market, things are moving and “Bitcoin seems to have been specially designed for this time. A perfect mirror of the irresponsibility of monetary and fiscal policy. The money for the printer will be consumed and the amount will continue to grow, ”he said.

This is why over the past 11 years, when the total assets of the world’s central banks have directly increased, the price of BTC has risen from nine cents to $ 65,000. Kling said:

“Anyone in the world with an Internet connection can buy $ 1 worth of bitcoin and start defending against currency degradation and the rapidly growing risk that the greatest monetary experiment in human history will end badly.”

Bitcoin / US dollar BTCUSD

US $ 56,737.6683 3,982,987.02

Volume 51.85 b Option $ 3,982.98 Opened $ 56,737.6683 Circulation 18.7 million Max. From the market 1.06 t

ANTY

AnTy has been continuously involved in the crypto space for over two years. Prior to her blockchain debut, she worked with the NGO Doctor Without Borders in fundraising and has since researched, read and created for various segments of the industry.


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