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Gold Steals the Spotlight as Bitcoin ETFs Cool Off in September

September ETF inflows surged into gold and Bitcoin, but gold stole the spotlight with record highs. Discover why gold outpaced Bitcoin, the Fed’s role, and what this means for investors.

September marked a turning point in the financial markets, as exchange-traded funds (ETFs) tied to hard assets witnessed a surge in inflows. Both gold and Bitcoin ETFs attracted fresh capital, but it was gold that emerged as the stronger performer, outpacing Bitcoin in momentum and investor interest. With the Federal Reserve signaling more rate cuts ahead, the tug-of-war between gold and Bitcoin as the ultimate hedge asset is intensifying.

Table of Contents

ETF Inflows Show Divergence

On a 30-day rolling basis, inflows into gold ETFs surged past Bitcoin, pushing the yellow metal closer to its strongest yearly gain. Investors flocked to gold funds as global uncertainty and the Fed’s monetary stance favored traditional safe-haven assets.

Meanwhile, Bitcoin ETFs, despite drawing steady interest, struggled to maintain the same pace. Following a wave of long liquidations, Bitcoin’s momentum cooled, leaving gold to steal the spotlight in September.

Why Gold Is Winning Right Now

Several factors explain why gold is leading the race:

  • Fed Rate Cuts → Lower interest rates reduce the opportunity cost of holding gold.

  • Stability Factor → Gold’s reputation as a time-tested hedge makes it attractive in turbulent markets.

  • Fresh Highs → Gold prices hit repeated all-time highs, reinforcing investor confidence.

As ecoinometrics highlighted on X, “Gold is outpacing Bitcoin, close to its strongest surge of the year… with the Fed signaling more rate cuts ahead, the trend is likely to continue.”

Bitcoin: Short-Term Setback, Long-Term Potential

While gold is shining, Bitcoin isn’t out of the game. Analysts point out that Bitcoin still carries unmatched long-term performance compared to gold. Crypto strategist Benjamin Cowen noted that even if gold’s rally were to multiply tenfold relative to Bitcoin, it would still be down 99.96% against BTC over the long haul.

However, short-term pressures are real. The largest crypto long liquidation event of 2025 followed the Fed’s rate cut, sending shockwaves through Bitcoin, Ethereum, and other digital assets. Over-leveraged traders were caught off guard, exposing the volatility risks that gold manages to avoid.

Central Bank Outlook: A Future Role for Bitcoin?

While gold enjoys its current dominance, banks and institutions are increasingly warming to Bitcoin’s role as a digital store of value. Deutsche Bank has projected that Bitcoin could join gold on central bank balance sheets by 2030, a monumental shift that would formalize its status as “digital gold.”

This shows that although gold is winning the short-term battle, Bitcoin may still secure the long-term war.

Expert Opinions: Schiff vs. Bitcoin Analysts

  • Peter Schiff (Gold Advocate):
    Schiff argues gold’s outperformance is a warning for Bitcoiners. He claims that after years of watching Bitcoiners get rich, “gold bugs are now getting rich while Bitcoin trades sideways.”

  • Bitcoin Analysts:
    In contrast, crypto advocates highlight Bitcoin’s superior long-term gains. Despite short-term volatility, Bitcoin has outperformed nearly every asset class in the last decade.

This clash of perspectives reflects the ongoing rivalry between traditional gold advocates and digital asset believers.

Conclusion

September made one fact clear: gold is currently stealing the spotlight, with ETF inflows and price performance leaving Bitcoin in the shadows. Yet the story is far from over. Bitcoin may have cooled off, but its long-term trajectory, institutional adoption, and potential role in central bank reserves suggest it still has plenty of room to shine.

For investors, the message is simple: gold provides stability today, while Bitcoin offers asymmetric upside tomorrow. The real winners may be those who hold both in their portfolios.

FAQs

Why did gold ETFs outperform Bitcoin ETFs in September?

Gold ETFs saw stronger inflows due to investor demand for stability, repeated all-time highs, and the Federal Reserve’s signals of rate cuts, which reduce the opportunity cost of holding gold.

Does Bitcoin still have long-term potential?

Yes. Despite September’s setback, Bitcoin’s long-term performance far outpaces gold. Analysts believe institutional adoption and even central bank inclusion could push Bitcoin significantly higher over time.

How did the Fed’s rate cut impact crypto markets?

The first rate cut in nine months triggered the largest long liquidation event of 2025, catching many leveraged traders by surprise and causing Bitcoin and other cryptos to plunge.

Could Bitcoin really appear on central bank balance sheets?

According to Deutsche Bank, yes. They project that Bitcoin could join gold as part of central bank reserves by 2030, further cementing its role as “digital gold.”

Should investors choose gold or Bitcoin?

It depends on goals. Gold offers stability and acts as a safe-haven hedge, while Bitcoin carries volatility but offers unmatched long-term upside. Many investors see value in holding both.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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