USD collapse anxiety: Bitcoin and gold ETFs gain momentum as nations opt for dual currency models

The global economy is changing fast, causing some people to worry that the U.S. dollar might collapse. These fears are growing because more people are using Bitcoin and buying gold. Also, many countries are starting to use two different types of money systems.

These changes could seriously affect financial markets. Especially, ETFs, which play a big role in setting prices for Bitcoin and gold, might be impacted. ETFs are currently worth about $15.7 trillion.

BRICS pushes de-dollarization efforts

The BRICS nations, which include Brazil, Russia, India, China, and South Africa, are working hard to reduce their reliance on the U.S. dollar. They're pushing forward with de-dollarization efforts by boosting the use of their national currencies and exploring alternatives like gold and Bitcoin for global trade. These steps are designed to significantly reduce the dollar's dominance in international markets.

With concerns over the dollar's stability on the rise, gold remains a reliable haven in economic turbulence. Demand for gold is climbing, with forecasts suggesting it may surpass its all-time high of $2,081 by 2024. Investors, worried about inflation and potential currency devaluation, are driving this trend. The growing popularity of gold ETFs, which offer accessible investment options for both individual and institutional investors, is also boosting gold prices.

As a digital asset and a hedge against traditional financial systems, Bitcoin is becoming increasingly popular. Notable figures like billionaire hedge fund manager Bill Ackman have pointed out Bitcoin's potential to challenge the U.S. dollar's supremacy.

With the cryptocurrency reaching all-time high values, investors are flocking to it in search of lucrative opportunities during these uncertain economic times. Adding to this momentum is the rising popularity of Bitcoin ETFs, which make it easier for everyday investors to gain exposure to the cryptocurrency.

The potential collapse of the U.S. dollar, raised by financial experts like Peter Schiff, could lead to serious trouble for the American economy and everyday life. Schiff highlights the major risks tied to the Federal Reserve's actions and the possible weakening of U.S. Treasurys as key factors that could cause a downturn. Due to the interconnected nature of global financial systems, a dollar collapse would impact not just the U.S., but economies worldwide.

Faced with these economic problems, many countries are choosing or have already started using dual currency systems. This allows them to use another currency alongside the U.S. dollar, reducing their economic risks.

Examples include China’s digital yuan and the BRICS group's idea of creating a new reserve currency. These moves could weaken the dollar’s global power and boost interest in alternatives like Bitcoin and gold.

Bitcoin ETFs see rapid growth

Interest in Bitcoin ETFs is growing fast, and this year's large investments in BlackRock and Fidelity's ETFs show it. BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund have attracted a lot of money since they started. BlackRock's IBIT has even overtaken the Grayscale Bitcoin Trust to become the world's biggest spot Bitcoin ETF, showing its rising importance in the market.

While Vanguard doesn’t offer any Bitcoin ETFs, it still leads the pack for total ETF inflows in 2024. BlackRock follows closely, largely due to its popular Bitcoin ETFs. Other players like Invesco are also active in the Bitcoin ETF space, though they see smaller inflows.

Bitcoin ETF flows have leveled out lately, but there is a clear increase in investor interest. This shows Bitcoin is becoming more popular as an alternative asset. Top ETFs like IBIT, FBTC, and the ARK 21Shares Bitcoin ETF are driving these strong inflows.

The fear of a U.S. dollar collapse and the growing interest in Bitcoin and gold marks an important time for the global economy. As countries start using dual currency systems and investors seek to diversify, financial markets are set for big changes. This situation highlights the need for careful management and smart strategies to handle the changing economic landscape.