Bitcoin vs Gold: A World Record for ETFs, 20 More Tons in China

Gold has just set a new record while Bitcoin continues to attract capital as well. Gold-backed ETFs held 4,189 tons at the end of August, following $18 billion in inflows over one month. Their assets now total $615 billion. During the same period, U.S. Bitcoin ETFs captured around $3.52 billion. Two rare assets, but still two markets of very different sizes.

In Brief

• Gold ETFs hold a record 4,189 tons after $18 billion in inflows in August.
• China bought an additional 20.2 tons, bringing its official reserves to 2,387 tons.
• U.S. Bitcoin ETFs attracted about $3.52 billion in the same month.

Gold Reaches 4,189 Tons While Bitcoin Accelerates

The rise of gold has been rapid. In July, global ETFs still held 4,068 tons. A month later, an additional 121 tons had joined the funds, bringing the total to 4,189 tons.

The movement extends a reversal already visible in early August, when gold reached a six-week high while Bitcoin stagnated. Investors injected $18 billion into gold ETFs in August. This is the second-best month ever recorded in value by the World Gold Council.

Europe contributed about $7.9 billion. North America followed with around $7.7 billion. Asia added $2 billion. The rise of the metal did the rest. Gold gained about 13% in August and finished the month around $4,563 per ounce. With capital inflows and price appreciation, assets managed by ETFs surged by 16% in one month to reach $615 billion.

Bitcoin also had a solid month. U.S. spot ETFs received about $3.52 billion, their best monthly result of 2026. Gold remains far ahead in size. However, Bitcoin is progressing much faster from a smaller base.

China Adds Another 20 Tons of Gold

ETF investors are not the only ones buying. The People's Bank of China added 20.2 tons of gold to its reserves in August, its largest monthly acquisition since October 2023. Beijing has been buying for 22 consecutive months. Its official reserves now stand at 2,387 tons, about 9% of the country's foreign exchange reserves. This share was still 8% a month earlier.

Chinese demand, however, is not uniform. Withdrawals of gold from the Shanghai Gold Exchange fell by 22% in August compared to July. They are down 27% year-on-year. Jewelry and traditional physical purchases are slowing down. Institutions, much less so. Chinese ETFs added 11 tons in August and now hold about 293 tons of gold. Their assets under management approach $42 billion.

Bitcoin follows a different trajectory. It does not benefit from regular purchases by central banks comparable to those observed in gold. Its institutional demand mainly comes through ETFs, companies, and asset managers. In August, Bitcoin ETFs recorded six positive sessions for $2.26 billion. The entire month will ultimately finish around $3.52 billion. The gap with the $18 billion directed towards gold remains considerable.

Bitcoin and Gold Do Not Yet Play Exactly the Same Role

Comparing Bitcoin and gold becomes almost automatic when investors seek protection against public debt, currencies, or financial tensions.

August, however, gives a more nuanced picture. Both assets attracted money at the same time. Gold benefited from concerns about U.S. debt, movements in the dollar, increased institutional purchases, and persistent demand from central banks. Bitcoin benefited from the return of investors to its ETFs and a significant rebound in its price.

Thus, it is not necessarily a transfer from one to the other. Wall Street still does not systematically classify Bitcoin as "digital gold." A recent survey by Bitwise shows that several institutions continue to categorize their exposure to Bitcoin among technology, innovation, or venture capital. The figures from August illustrate this difference well. 4,189 tons for gold ETFs. $615 billion in assets.

$18 billion injected in one month. Bitcoin responds with $3.52 billion in inflows into its U.S. ETFs, its best month of the year. Gold thus maintains a massive lead in traditional portfolios. Bitcoin continues to carve out its place. For now, investors seem to want both.