Gold ETF·Tokens Joint Strength…Market Cap Approaching 1.4 Billion Dollars

First quarter gold ETF inflows recorded at a 3-year high (Source: WorldGoldCouncil)

As gold prices neared an all-time high, cryptocurrency investors are also turning their attention to gold-backed tokens. Cryptocurrencies linked to physical gold are attracting attention by achieving high returns this year.

According to a CoinDesk report on the 13th (local time), Paxos Gold (PAXG) and Tether Gold (XAUT) have each risen 24.15% and 23.7% this year, surpassing 3300 dollars. Although the prices have slightly adjusted now, they are still maintaining a strong trend at 3265 dollars and 3244 dollars, respectively.

This is in contrast to the overall cryptocurrency market. Bitcoin has fallen nearly 11% since the beginning of the year, and the overall cryptocurrency market has shrunk by more than 30% according to the CoinDesk20 (CD20) index. Compared to this, gold-backed tokens are supported by the physical asset of gold and are playing a role as a safe asset amid recent geopolitical uncertainties such as US-China trade conflicts.

This trend is also reflected in the traditional gold market. According to the World Gold Council (WGC), global gold ETF inflows in the first quarter of 2025 were 226.5 tons, the highest level since 2022. Notably, 60% of these inflows were concentrated in the North American region. During the same period, the issuance of gold-backed cryptocurrencies also reached 42.7 million dollars, and combined with the rise in gold prices, the total market capitalization approached 1.4 billion dollars.

CoinDesk reported that "the simultaneous rise of gold ETFs and cryptocurrency gold tokens is drawing attention to the future evolution of the gold investment market."