A record $7 billion in inflow in 5 days! Investors are no longer picky; they're buying gold and Bitcoin together.

Investors are abandoning the "either/or" logic and instead betting on both gold and Bitcoin.

According to a Bloomberg report on Thursday, ETFs tracking these two asset classes attracted a total of about $7 billion in inflows over the past five trading days, setting a new record and pushing some of the largest gold and Bitcoin funds to the top of this week's list of U.S. ETF inflows.

The immediate trigger for this surge in liquidity was US Treasury Secretary Bessant's announcement of plans to at least double the size of long-term Treasury bond repurchase agreements. This news initially lowered US Treasury yields and the dollar, while simultaneously driving up gold and Bitcoin prices, providing investors seeking assets "beyond government reach" with a new reason to enter the market. Currently, gold has risen approximately 13% this month, recently breaking through $4,600 per ounce; Bitcoin, meanwhile, has reclaimed the $80,000 mark.

The simultaneous rise in both asset classes signifies the return of the "debasement trade"—that is, in the context of escalating fiscal pressure and looser financial conditions, scarce assets with limited supply and operating outside the government monetary system become more attractive. This renewed logic is reshaping investors' asset allocation strategies.

Record inflows: Gold and Bitcoin ETFs both enter the top ten weekly rankings.

According to data compiled by Bloomberg, gold and Bitcoin ETFs recorded a combined net inflow of approximately $7 billion over the past five trading days, a record high.

State Street's SPDR Gold ETF attracted nearly $3.4 billion, ranking among the top US ETFs in terms of inflows this week, second only to a few funds including the Vanguard S&P 500 ETF (VOO). BlackRock's iShares Bitcoin Trust ETF (ticker: IBIT) also recorded $1.5 billion in inflows, placing it among the top ten for the week.

Looking at the data from the beginning of the year to date, GLD, with a scale of $155 billion, still recorded a net outflow of about $2.8 billion; while IBIT, with a scale of $60 billion, has remained relatively stable, with a net inflow of about $830 million during the same period.

" What's really worth paying attention to isn't just the size of the inflows themselves, but the momentum behind them—the demand is not only positive, but accelerating, " said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. Analysts point out that this momentum means investors are focusing on correcting their previously underweighted positions.

Narrative Rekindled: Fiscal Anxiety and the Logic of Scarcity Assets Converge Again

The core driver of this market rally is the rising concern about the sustainability of US fiscal policy.

In a research report, Giutam Chhugani, Senior Analyst for Global Digital Assets at Bernstein, wrote: "The 40-year cycle of declining interest rates appears to be coming to an end, and governments are facing increasing pressure to repay debt as sovereign debt levels climb to historic highs. Investors holding scarce assets such as Bitcoin may benefit from this—assets that cannot be easily issued or diluted."

Gold benefits from this logic due to its traditional safe-haven status, while Bitcoin, with its fixed total supply of 21 million coins, is seen as a potential safe haven against the shocks of government policies. Bloomberg Intelligence analyst Balchunas stated that this round of market activity has brought Bitcoin back to its core narrative: "This is exactly what Bitcoin was born to do; it's its fundamentals."

Billionaire Ray Dalio also stated that investors should reduce their bond holdings, allocate up to 15% of their assets to gold, and invest a "small amount" in Bitcoin to hedge against the risks of the US debt crisis.

Despite the strong inflow of funds, not all analysts are confident that this logic will continue.

Fundstrat economic strategist Hardika Singh believes the momentum for devaluation trading is waning, and stocks may be a more reliable hedging tool than gold or Bitcoin. In her research report, she wrote, "While widening deficits are certainly a problem, the very 'no solution' ironically becomes a solution itself—investors will eventually have to accept this reality. In that scenario, gold and Bitcoin could still very well continue to rise, but I don't think the driving force will solely come from the devaluation logic."

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