Gold prices soar in 2025 while bitcoin struggles, yet institutional bitcoin holdings show unexpected resilience
In 2025, the long-debated debasement trade produced a clear price winner. Gold delivered exceptional returns, while bitcoin lagged sharply after a strong start to the year. However, focusing solely on price performance misses a crucial part of the story. Capital flows and ETF data reveal a more nuanced picture of investor behavior, particularly among institutions.
Gold vs Bitcoin: A Year of Divergence
Through August 2025, gold and bitcoin were closely aligned, each gaining around 30% year-to-date. The trend shifted dramatically in the final quarter. Gold surged approximately 65% for the year, one of its strongest performances on record, as investors sought traditional safe-haven assets.
Bitcoin, by contrast, experienced a sharp reversal. After reaching an October all-time high, it suffered a 36% correction, leaving the asset down roughly 7% for the year and trading near the $80,000 level.
This divergence reinforced the narrative that gold outperformed bitcoin as a hedge against monetary debasement.
Despite bitcoin’s price weakness, ETF data tells a different story. U.S. spot bitcoin ETF assets under management declined by less than 4%, even during the steep drawdown.
Holdings fell modestly from about 1.37 million BTC in October to roughly 1.32 million BTC by mid-December, indicating that ETF investors largely held their positions. Importantly, bitcoin exchange-traded product flows exceeded gold ETP flows in 2025, highlighting continued institutional interest.
Bitcoin Trust (IBIT) now controls nearly 60% of total U.S. bitcoin ETF holdings, underscoring growing market concentration rather than widespread selling.
While gold clearly won the price battle in 2025, the resilience of bitcoin ETF holdings suggests long-term confidence remains intact. The correction appears driven more by speculative markets than by institutional exits, signaling that bitcoin’s role in the debasement debate may be evolving rather than disappearing.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.