Why are Crypto Whales Investing in Tokenized Gold? All-Time High in Gold ETFs Drives Market demand for Gold Coins
With increasing financial uncertainty, investors are making significant investments in tokenized gold, such as PAXG and XAUT, in favor of traditional gold ETFs.
Combining gold’s tradition with digital ease, these assets are emerging as essential tools for diversification during a volatile 2025.
Gold-Backed Cryptocurrencies Surpass the Gold ETF Sector
Gold-backed cryptocurrencies are taking center stage. PAXG has increased by 24.15%, while XAUT closely follows at 23.7%, mirroring gold’s continued rise as a sought-after asset.
In contrast, Bitcoin has experienced an 11% drop, with the broader trading market suffering a decline exceeding 30%. Tokenized gold remains resilient, being linked to tangible gold stored securely and aligned with current crypto market prices, thus providing stability in a rocky digital environment.
Gold all-time high
$PAXG @Paxos pic.twitter.com/mCojUls38P
— Kraken Desktop (@KrakenDesktop) April 11, 2025
Trade tensions with China, compounded by tariffs, have disrupted trading market dynamics, leading to a 12% drop in the Nasdaq within two days. Both BTC and ETH have also experienced significant declines. In this scenario, tokenized gold is gaining considerable attention.
According to the World Gold Council, gold ETFs are witnessing inflows at levels not seen since early 2022, driven by North America contributing 60% of that market demand. Gold-backed cryptocurrencies have followed suit, as reported by Coin Terminal, generating over $42.7 million in crypto token minting in the first quarter, bringing their trading market capitalization to nearly $1.4 billion.
Diversifying Portfolios with Tokenized Gold
The appeal of gold-backed tokens comes from their adaptability. Unlike conventional gold investments, these cryptocurrencies allow for fractional ownership and provide continuous trading opportunities via platforms like HTX, attracting both retail and institutional investors.
The growth of gold-backed cryptocurrencies is part of a broader movement towards the tokenization of Real-World Assets (RWA).
RWA tokens are transforming the way investors manage their portfolios, encompassing everything from stablecoins to tokenized treasury bills and real estate. This sector is rapidly gaining traction due to its accessibility, liquidity, and capacity to mirror traditional asset values in a digital environment.
Prospects for Gold-Backed Cryptocurrencies and Gold ETFs
In 2025, gold-backed cryptocurrencies symbolize the intersection of established wealth and innovative technology. They combine the reliability of physical gold with the adaptability of distributed ledger, creating a unique space that links tradition with modern practices.
For investors struggling amidst trading market instability, tokens such as PAXG and XAUT present a reliable option.
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Key Takeaways
- With increasing financial uncertainty, investors are making significant investments in tokenized gold, such as PAXG and XAUT, in favor of traditional gold ETFs.
- Gold-backed cryptocurrencies in 2025 symbolize the intersection of established wealth and innovative technology, combining the reliability of physical gold with the adaptability of distributed record.
The post Why are Crypto Whales Apeing Tokenized Gold? Gold ETF ATH Fuels Rush on Gold Coins appeared first on 99Bitcoins.
