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Gold ETF Inflows Hit Three-Year High as PAXG, XAUT Outperform Wider Crypto Market
Gold-backed cryptocurrencies like PAXG and XAUT rose significantly so far this year, mirroring a spike in ETF demand.

What to know:
- PAXG and XAUT are up more than 23% year-to-date, matching gold’s rally and outperforming the wider crypto market.
- Tokenized gold offers crypto investors exposure to real-world assets with blockchain-based liquidity.
- Demand for gold ETFs hit a three-year high in Q1, signaling a broader flight to safety
As traditional gold markets heat up, crypto investors are following suit—flocking to tokenized versions of the precious metal that offer both price exposure and digital flexibility.
Gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) have risen 24.15% and 23.7% respectively year-to-date to new all-time highs above $3,300, roughly matching the performance of spot gold. Their prices have since receded slightly to $3,265 and $3,244, respectively.
While gold-backed cryptocurrencies surged so far this year, the wider cryptocurrency market has been in a downtrend. Bitcoin (BTC) has lost more than 11% of its value so far this year, while the wider crypto market has fallen by a little over 30%, based on the CoinDesk 20 (CD20) index.
The tokens, which are backed by physical gold and track its price, experienced a surge in value as investors sought refuge from the uncertainty induced by the escalating U.S.-China trade war.
The move echoes a broader return to gold as a safe-haven asset. Inflows into gold ETFs hit 226.5 tonnes in the first quarter of 2025, the highest level since early 2022, according to data from the World Gold Council. Nearly 60% of that demand came from North America.

Similarly, gold-backed cryptocurrencies saw net token minting of over $42.7 million in the first quarter of the year, according to data from RWA.xyz, helping along with gold’s price appreciation raise their total market capitalization near $1.4 billion.
Francisco Rodrigues
Francisco is a reporter for CoinDesk with a passion for cryptocurrencies and personal finance. Before joining CoinDesk he worked at major financial and crypto publications. He owns bitcoin, ether, solana, and PAXG above CoinDesk's $1,000 disclosure threshold.
