PAXG and XAUT outperform the entire crypto market — inflows into gold ETFs reach the highest level in three years | CoinDesk JAPAN

• PAXG and XAUT have risen over 23% year-to-date, aligning with the increase in gold and outperforming the overall crypto market.
• Tokenized gold provides cryptoasset investors with exposure to real assets through blockchain-based liquidity.
• Demand for gold ETFs reached a three-year high in the first quarter, suggesting a flight to safe assets.

As the traditional gold market thrives, cryptoasset (virtual currency) investors are following suit, flocking to the tokenized version of precious metals that balances price exposure and digital flexibility.

Cryptoassets backed by gold, such as Paxos Gold (PAXG) and Tether Gold (XAUT), have risen 24.15% and 23.7% year-to-date, respectively, updating their all-time highs above $3300, closely aligning with the performance of physical gold. Subsequently, the prices slightly dropped to $3265 and $3244, respectively.

Gold-backed cryptocurrencies have surged so far this year, but the overall crypto market has been on a downward trend. Bitcoin (BTC) has lost more than 11% of its value so far this year, and the overall crypto market is down just over 30%, according to the CoinDesk 20 Index (CD20).

Tokens backed by physical gold that track its price surged as investors sought a safe haven amid the uncertainty triggered by the escalation of the US-China trade war.

This movement reflects a broad return to gold as a safe asset. According to data from the World Gold Council, inflows into gold ETFs reached 226.5 tons in the first quarter of 2025, marking the highest level since early 2022. About 60% of this demand comes from North America.

According to data from RWA.xyz, similarly, the net issuance amount of gold-backed cryptoassets tokens exceeded $42.7 million (approximately 6.1 billion yen, based on an exchange rate of 143 yen to the dollar) in the first quarter of this year. Along with the rise in gold prices, the market capitalization of these cryptoassets has increased to nearly $1.4 billion (approximately 200 billion yen).