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WGC REPORT :Gold ETF Flows- June 2025

Global gold ETFs’ total AUM rose to a month-end peak and holdings bounced to the highest in 34 months

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H1 in review

Global physically backed gold ETFs1 saw inflows of US$38bn during H1, boosted by strong positive flows in June (Chart 1), marking the strongest semi-annual performance since H1 2020.2  All regions saw inflows last month, with North American and European investors leading the charge.

During the first half, North America accounted for the bulk of inflows, recording the strongest H1 in five years. And despite slowing momentum in May and June, Asian investors bought a record amount of gold ETFs during H1, contributing an impressive 28% to net global flows with only 9% of the world’s total assets under management (AUM). European flows finally turned positive in H1 2025 following non-stop semi-annual losses since H2 2022.

By the end of H1 the surging gold price and notable inflows pushed global gold ETFs’ total AUM 41% higher to US$383bn, a month-end record. Collective holdings in H1 grew 397t to 3,616t, the highest month-end value since August 2022 (Chart 2).

Regional overview

North America attracted US$4.8bn in June – the strongest monthly inflow since March – bringing total H1 inflows to US$21bn. Spiking geopolitical risks amid the Israel-Iran conflict boosted investor demand for safe-haven assets and supported inflows into North American gold ETFs. Although it held rates steady in June, the US Fed continued to express concerns about slowing growth and rising inflation.3 Markets are now pricing in three rate cuts by the end of 2025 and an additional two in 2026.

The investor response has been swift: US Treasury yields declined, and the dollar continued to weaken. Persistent policy uncertainty and ongoing fiscal concerns are likely to remain an overhang on the market, which in turn could help support gold ETF demand in the near to medium term.

European inflows continued for a second month, adding US$2bn in June – the strongest since January – and lifting the region’s H1 total to US$6bn. The UK led inflows in the month; although the Bank of England kept rates unchanged at its June meeting, the stance was generally dovish. 4 Combined with weaker growth, easing inflation and the cooling labour market, investors raised their bets on future rate cuts. This resulted in local yields declining and pushed up gold’s allure. Meanwhile, the eighth cut from the European Central Bank, uncertainties surrounding growth, and rising geopolitical risks generally, contributed to gold ETF demand in several major markets.

Asian flows flipped positive in June, albeit only mildly at US$610mn, ending at US$11bn – a record amount for any H1 period. India led inflows in June, likely supported by rising geopolitical risks in the Middle East. Japan recorded inflows for the ninth consecutive month (US$198mn, US$1bn H1), possibly driven by elevated inflationary concerns – particularly when the rice price surged.6 China only saw mild inflows in the month (US$137mn) as trade tensions eased and the local gold price moderated.7 Nonetheless, China’s H1 inflows of US$8.8bn (85t) were unprecedented amid spiking trade risks with the US, growth concerns and the surging gold price.

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WGC Report-Digital Gold: Unlocking a $700bn Opportunity

Yes—Digital Gold Could Become The Next Major Growth Market For Gold, But Only If The Industry Solves Trust, Access, Utility and Cost.

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The World Gold Council (WGC) and Boston Consulting Group estimate that digital gold could unlock up to US$700 billion in latent demand over the long term, although this is a potential-demand estimate rather than a five-year forecast.

What “digital gold” means

The report defines digital gold as two related product categories: vaulted digital gold (digitally represented claims on allocated physical gold) and tokenised gold (blockchain-based tokens backed by physical gold). Together, they currently account for roughly US$45–55 billion, less than 1% of the global gold market, which the WGC values at about US$13 trillion.

Momentum is nonetheless visible. Tokenised gold has grown about fivefold since late 2024 to around US$6 billion, while cumulative spot trading volumes exceeded US$90 billion in Q1 2026—more than during all of 2025.

The $700bn opportunity

The headline figure represents the additional demand that could emerge if the main barriers to adoption were removed at scale. Nearly nine in ten surveyed retail investors said they would consider digital gold under the right conditions, based on a survey of more than 12,000 investors and interviews with 20 industry experts.

The global digital-gold market—currently valued at US $ 45–55 billion—is positioned for significant expansion. In their base-case outlook, the market is projected to grow at an annual rate of approximately 27%, reaching US $ 160–170 billion by 2031. Under a bull-case scenario, market valuation could climb even higher, reaching US $ 270–280 billion over the same period. Furthermore, if key adoption barriers such as regulatory clarity, pricing, and platform trust are fully addressed, the long-term latent demand for digital gold could unlock up to US700 billion. 

Genuinely new gold demand by 2031. About US$95 billion, net of displacement

The crucial distinction is that US$700bn is not a market-size prediction for 2031. It is the theoretical upside if trust, distribution, product usefulness and pricing improve sufficiently; the base case is far more conservative.

Four barriers to adoption

Trust is the decisive barrier. Nearly four in five investors prioritise trusting the provider, and they want proof that products are safe, legitimate, transparently backed and redeemable for physical gold; clearer regulation and consumer protection are also central.

Access matters because familiar distribution channels dramatically increase uptake. In markets such as China, India and Indonesia, where digital gold is embedded in super-apps, payment platforms and banking apps, penetration is up to seven times higher than in markets without such channels.

Utility could transform gold from a passive store of value into a usable financial asset. The most attractive new feature is yield generation through lending or collateral use, followed by payments functionality.

Cost remains a prerequisite. Digital gold must be price-competitive with physical bullion and gold ETFs; an uncompetitive price is the second most common barrier cited by investors.

Why it may create new demand

The report argues that digital gold is more likely to expand the gold market than merely shift investors from ETFs, coins or bars. About 65% of latent demand comes from people who do not yet own gold, and 52% of current digital-gold investors held no gold before their first digital purchase.

This makes digital gold a potential on-ramp: among those first-time digital-gold buyers, 92% subsequently bought other forms of gold. Even after allowing for some switching between gold formats, the base case implies around US$95 billion of genuinely new demand by 2031.

Who will drive growth

Younger investors are the immediate growth engine. Awareness reaches 50% among 25–34-year-olds, versus 23% among those aged 55 and older, and younger cohorts are twice as likely to say they would invest if entry barriers were addressed.

This aligns with the broader tokenisation of finance. As blockchain-based investment products become more mainstream, gold’s physical backing may give it a credibility advantage over purely digital assets—provided issuers can demonstrate custody, redemption rights and regulatory compliance.

Could it be the next major gold growth market?

Potentially, yes—but conditionally. The case for digital gold is strong because it combines gold’s established safe-haven and store-of-value role with digital accessibility, fractional ownership, faster transferability and possible new financial uses. The WGC’s own base case implies a market roughly three times its current size by 2031.

However, digital gold will remain a niche if providers cannot deliver:

  • Transparent, auditable proof that tokens are fully backed by physical gold.
  • Simple, legally robust redemption into physical gold or cash.
  • Clear regulation and investor protections.
  • Distribution through mainstream banking, payments and investment apps.
  • Fees competitive with ETFs and physical bullion.
  • Useful features such as collateral, lending or payments—without compromising safety.

Assessment

Digital gold is best viewed as a high-potential distribution and product innovation, not an automatic replacement for physical gold or ETFs. Its biggest contribution may be bringing first-time, younger and digitally native investors into gold, then encouraging them to hold other gold formats as their allocations mature.

If the industry establishes trusted infrastructure and interoperable standards, the US$700bn latent-demand estimate becomes a plausible long-run ceiling. If not, the market may still grow, but likely toward the report’s bear-case trajectory of roughly US$70–80 billion by 2031, driven mainly by wealth growth rather than conversion of untapped demand.

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