Gold Price Surge Triggers Fund Flows to Gold Tokens as Crypto Market Shifts Direction

Jakarta, Pintu News – Heightened geopolitical tensions have pushed physical gold prices to their highest level in a month. This phenomenon has not only impacted traditional markets, but has also spread to the world of digital assets.

On-chain data shows a surge in demand for tokenized gold assets, signaling a shift in investor interest to blockchain-based hedging instruments. This shows how crypto and commodity markets are interconnected in the face of global uncertainty.

Gold Prices Surge, Investors Hunt for Safety

On March 2, gold prices surged 2% and briefly touched an intraday high of $5,394 per ounce, the highest since January 30. Afterward, gold prices corrected slightly to $5,363.7, but remained in the bullish zone.

This price surge was triggered by the United States and Israel’s military actions against Iran, which drove fund flows into safe haven assets such as gold. Throughout 2025, gold has recorded a gain of around 65%, making it one of the best performing assets amid global market turmoil.

For crypto market participants, this momentum is crucial. The volatility that has returned to the digital asset market has led investors to look for more stable alternatives. Gold tokens such as PAX Gold (PAXG) and Tether Gold (XAUT) are becoming a top choice to maintain exposure to gold without having to rely on the conventional financial system. This phenomenon signals a shift in investment strategy amid economic and geopolitical uncertainty.

Also read: 5 US Economic Data That Could Move Bitcoin (BTC) This Week

Gold Token Demand Surges, Large Transactions Color Blockchain

Blockchain analytics firm Lookonchain identified an inactive wallet that spent $1,000,000 USDC to buy PAX Gold (PAXG) and Tether Gold (XAUT). The wallet with address 0x1C70 made several swaps in a few hours and still holds $4,000,000 USDC.

Lookonchain mentioned that this wallet is likely to make additional purchases in the near future. This activity is a strong signal that interest in gold tokens is growing among large investors.

In addition, an Ethereum (ETH) whale also made a portfolio rotation from Ethereum (ETH) to Tether Gold (XAUT) despite suffering losses. According to OnchainLens, wallet 0x744b swapped 1,000 ETH worth $1,940,000 into 358.49 XAUT at $5,413, for a loss of over $60,000.

Over the past two years, this whale has received 1,645 ETH worth $3,260,000 and still holds 645 ETH ($1,250,000). This move suggests that institutional investors are starting to shift some of their digital assets to commodity-based instruments.

Read also: Bitcoin (BTC) is still cheap compared to gold, ready for a price surge?

Large Institutions and the Surge in Gold Token Capitalization

London-based asset manager Abraxas Capital Management was also noted to have significantly increased its gold token holdings. According to data from Arkham Intelligence, the company received 28,723 XAUT worth $151,000,000 directly from Tether’s treasury.

This transaction is the largest in the last three weeks for the XAUT token. Another interesting fact, Heka Funds (Abraxas Capital) once held 1.5% of the total Tether (USDT) supply and is now the second largest entity by interaction volume on the Tether network.

This increase in gold token accumulation is in line with greater interest in alternative store-of-value assets in the crypto ecosystem. Investors tend to favor gold-based tokens as they offer price stability and potential returns that track the precious metal’s market movements.

In addition, the risk of high volatility in digital assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) can be minimized by diversifying into gold tokens. This strengthens the position of gold tokens as an adaptive investment solution in the digital age.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. Crypto Investors Flock to Tokenized Gold as Prices Surge. Accessed on March 8, 2026
• Featured image: Generated by AI