Gold ETF inflows hit a three-year high, with PAXG and XAUT performing better than the Crypto Assets market.

PANews, April 14 – According to CoinDesk, as the traditional gold market heats up, cryptocurrency investors are also following suit, turning to invest in tokenized versions of this precious metal. These tokens provide price exposure while also offering digital flexibility. Since the beginning of this year, gold-backed cryptocurrencies such as Paxos Gold (PAXG) and Tether Gold (XAUT) have risen by 24.15% and 23.7% respectively, reaching new highs of over $3300, with the increase roughly comparable to that of spot gold. Subsequently, their prices have slightly retreated to $3265 and $3244. Despite the significant rise of gold-backed cryptocurrency so far this year, the broader crypto market is in a downtrend. Bitcoin has fallen more than 11% year-to-date, while the overall cryptocurrency market has dropped just over 30%. These tokens, backed by physical gold and tracking its price, have soared in value as investors seek to avoid uncertainty triggered by the escalation of the China-U.S. trade war. This move reflects a broader return to gold as a safe-haven asset. According to RWA.xyz, the net minting volume of cryptocurrency backed by gold exceeded $42.7 million in the first quarter of this year, and with the rise in gold prices, its total market capitalization is approaching $1.4 billion.