Institutions Buy Bitcoin ETFs as Retail Chases Gold in March
Retail investors poured ₱3.6 trillion ($60 billion) into gold funds by Q1 2026, but institutions shifted back to Bitcoin through ETF channels, with Bitwise Head of Research André Dragosch noting demand had accelerated to its highest level since October 2025.
Key Takeaway
Institutions shifted back to Bitcoin ETFs while retail investors chased gold's defensive narrative.
Institutional money returned to Bitcoin through ETF channels while retail investors flooded into gold and silver funds, according to the Bank for International Settlements March quarterly review.
US spot Bitcoin ETFs recorded ₱69.66 billion ($1.16 billion) in net inflows from March 9 to 17. Daily inflows during that streak included ₱14.83 billion ($246.9 million) on March 10, ₱10.83 billion ($180.4 million) on March 13, and $199.4 million on both March 16 and 17. Bitwise Head of Research André Dragosch said institutional demand for Bitcoin had accelerated to its highest level since October 2025. Bitcoin climbed above $75,000 during the inflow period before ETFs saw a $163.5 million outflow on March 18.
The retail side told a different story. Cumulative retail inflows into gold funds hit roughly $60 billion by Q1 2026, up from about $20 billion in late 2025. Physically backed gold ETFs pulled in $19 billion in January alone, the strongest month on record, followed by $5.3 million in February. Gold ETF assets under management reached a record $701 billion in February, with total holdings at 4,171 metric tons.
But institutional investors maintained stable positions in precious metals or trimmed exposure entirely, according to BIS fund-flow data. The largest gold-backed ETF, GLD, saw more than $4 billion in outflows during March, its largest weekly redemption in 20 years. Analysts at Commerzbank said more restrictive policy expectations were the key reason gold came under pressure. TD Securities analysts noted that institutional positioning had grown large during the past year's debasement trade, and the foundations of that trade were weakening.
Silver doubled in 2025 and rose more than 50% in January alone before falling about 30% in a single day in late January. Gold generated 84% more wealth than Bitcoin over the past five years, though the digital asset is now building what Bernstein analysts call its most resilient ownership base on record through spot ETFs and corporate treasuries. North America drove gold ETF inflows with $7 billion in January and $4.7 billion in February, tied to geopolitical risk and demand for defensive assets according to the World Gold Council. Europe saw $1.8 billion in outflows during February. Publicly traded companies collectively hold 1.15 million Bitcoin, representing 5.5% of total supply as of March 2026.
This article was written based on reporting from CryptoSlate.
