Gold Miners ETFs See Inflows

The past six months saw gold’s price rise more than 5%, and it crossed the $2,000 threshold. Additionally, in late 2023 several firms reported that central banks’ gold purchases were closing in on all-time highs. Expectations for 2024 are also quite bullish.

However, this hasn’t translated into inflows for physical gold ETFs. In fact, the SPDR Gold Shares (GLD) saw outflows of more than $3 billion during the six-month time frame according to VettaFi Pro.

Physical Gold ETFs Seeing Outflows

VettaFi Head of Research Todd Rosenbluth shared in a recent piece that some of the “weak sentiment could also be due to the emergence of 10 spot bitcoin ETFs.”

However, despite several physical gold ETFs on the market seeing strong outflows and spot Bitcoin ETFs stealing market share, gold miner ETFs haven’t necessarily faced the same problem of outflows.

The $11.4 billion VanEck Gold Miners ETF (GDX) and the nearly $4 billion VanEck Junior Gold Miners ETF (GDXJ) added roughly $500 million in combined assets during the past six months. GDX saw nearly $285 million in cumulative inflows, and GDXJ pulled in around $215 million, according to VettaFi Pro.

See More: “Why Was 2023 Such a Good Year for Gold?