Crypto Whales Flock to Tokenized Gold as Gold ETFs Hit Record Highs

As gold-backed exchange-traded funds (ETFs) reach all-time highs (ATH), major cryptocurrency investors—often referred to as ’whales’—are increasingly turning to tokenized gold assets. This surge in interest highlights a growing trend of digital asset diversification, where traditional safe-haven commodities like gold are being integrated into blockchain-based financial products. The appeal lies in the combination of gold’s historical stability and the liquidity advantages offered by tokenization. Analysts suggest this movement could signal broader institutional adoption of asset-backed tokens in the crypto space.

(DeFI Llama)

Gold-Backed Cryptos Outshine the Gold ETF Market

Gold-backed cryptos are stealing the show. PAXG is up 24.15%, and XAUT trails just behind at 23.7%, echoing gold’s steady climb as a safe-haven heavyweight.

Compare that to Bitcoin’s 11% nosedive and a crypto market bleeding over 30%. Tokenized gold stands firm. Tethered to physical gold locked in vaults and synced to spot prices, these assets stabilize a volatile digital landscape.

Gold all-time high$PAXG @Paxos pic.twitter.com/mCojUls38P

— Kraken Desktop (@KrakenDesktop) April 11, 2025

Tariffs have tangled trade relations with China and have sent shockwaves through Wall Street, crashing the Nasdaq by 12% in just two days. Bitcoin and Ethereum didn’t escape either, both taking hard blows. Meanwhile, tokenized gold is stealing the spotlight.

The World Gold Council reports inflows into gold ETFs at a peak not seen since early 2022, with North America fueling 60% of that demand. Gold-backed cryptos matched the trend, according to Token Terminal, minting over $42.7 million worth of tokens in Q1 alone, pushing their market cap toward $1.4 billion.

Portfolio Diversification with Tokenized Gold

The allure of gold-backed tokens lies in their flexibility. Unlike traditional gold holdings, these cryptos offer fractional ownership and a nonstop trade window through exchanges like HTX, pulling in retail and institutional players alike.

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This rise of gold-backed cryptos is part of a larger trend in tokenizing Real-World Assets (RWA).

RWA tokens are reshaping how investors manage portfolios, from stablecoins to tokenized treasury bills and real estate. The sector is gaining momentum due to its accessibility, liquidity, and ability to reflect traditional asset values in a digital ecosystem.

The Future of Gold-Backed Cryptocurrencies and Gold ETF

Gold-backed cryptos in 2025 are where old wealth meets new tech. They marry the dependability of physical gold with the versatility of blockchain, carving out a niche that bridges tradition and modernity.

For investors battered by market chaos, tokens like PAXG and XAUT offer a solid lifeline.

Key Takeaways

• As financial instability deepens, investors are betting big on tokenized gold like PAXG and XAUT over a traditional gold ETF.
• Gold-backed cryptos in 2025 are where old wealth meets new tech. They marry the dependability of physical gold with the versatility of blockchain.