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Kraken pushes xStocks to turn tokenized stocks into parallel equity rails

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Kraken pushes xStocks to turn tokenized stocks into parallel equity rails

Kraken is trying to turn tokenized equities from a side‑show into a parallel equity market running on crypto rails through its xStocks platform and a new Nasdaq partnership.

Summary

  • xStocks offers 60+ tokenized U.S. stocks and ETFs, fully backed 1:1, with 24/5 trading and EU rollout aimed at investors shut out of Wall Street hours.
  • Kraken is acquiring issuer Backed Finance and has logged over $25B in volume in under eight months across CEX, DEX, and mint/redemption flows.
  • A Nasdaq partnership will use xStocks tech to move listed securities onto blockchain rails, while regulators warn that “mimic” products risk diluting shareholder rights.

Kraken is trying to turn tokenized equities from a side‑show into a parallel equity market that runs on crypto rails, 24/7. Its xStocks platform now offers more than 60 tokenized U.S. stocks and ETFs, has been rolled out to eligible clients across the European Union, and has processed over $25 billion in cumulative transaction volume in under eight months, according to company data and recent coverage.

How Kraken’s tokenized stock platform works

xStocks lets users buy, sell and transfer blockchain‑based tokens that mirror real U.S. equities like Tesla, Amazon, Nvidia and broad‑market ETFs, with each token fully backed 1:1 by the underlying security held by a licensed custodian in a bankruptcy‑remote structure. Cointelegraph and Finance Magnates report that the product gives investors 24/5 trading in digital certificates that track U.S. prices, extended hours beyond Wall Street’s 9‑to‑5, and the ability to move positions between compatible venues or self‑custody them on‑chain. Kraken’s European rollout, announced in September 2025, explicitly targets clients who “for too long” have found it “unnecessarily challenging to gain exposure to U.S. markets,” as global head of consumer Mark Greenberg put it.

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Under the hood, Kraken is pulling tokenization closer to its core stack. The exchange has agreed to acquire Backed Finance – the issuer behind xStocks – integrating issuance and trading under one roof just as it prepares for a planned 2026 IPO. AInvest and other outlets note that xStocks has already surpassed $25 billion in total transaction volume, including centralized venue trading, DeFi liquidity, and mint/redemption flows, with partnerships in place to distribute the tokens via platforms like Bybit and Gate.io to users in more than 110 countries. In parallel, a separate initiative will see Nasdaq use Payward’s (Kraken’s parent) xStocks tokenization technology to move listed securities onto blockchain rails for global distribution – a sign that incumbents increasingly prefer to build on top of Kraken’s infrastructure rather than compete with it from scratch.

Market structure: equity rails on crypto infrastructure

The pitch is blunt: make stocks as composable as stablecoins. AInvest summarises Kraken’s goal as “making equities as composable as stablecoins in web3 ecosystems,” letting traders post tokenized stocks as collateral, wrap them into on‑chain strategies, or trade perpetual futures that reference xStocks rather than traditional listings. A recent Business Wire release notes that Kraken has already listed “the world’s first regulated tokenized equity perpetual futures,” using xStocks as the reference layer so traders can “respond to market events without waiting for traditional markets to open.” That reframes tokenized equities from a convenient wrapper into a potential new base layer: equity exposure that trades like crypto, clears across borders, and is governed by a mix of securities law and smart contracts rather than just a single national exchange rulebook.

Regulation remains the hard edge. The World Federation of Exchanges has warned that some tokenized stock products act as “mimics” that may not deliver full shareholder rights, and Nasdaq’s 2025 filing to list tokenized securities alongside conventional shares was a direct response to that risk. Kraken is betting that by keeping xStocks fully backed, integrating the issuer, and pushing for regulated derivatives on top, it can stay on the right side of that line – and, in the process, turn its tokenized equity platform into a meaningful revenue and strategic pillar ahead of its planned public listing.

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Crypto World

Bitcoin ETFs to surpass gold ETFs in size

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Crypto Breaking News

Bitcoin spot ETFs may soon surpass gold ETFs in assets under management, fracturing the long-standing narrative that “digital gold” is a perfect stand-in for investors seeking a safe haven. Bloomberg ETF analyst James Seyffart shared the view in an interview linked to the Coin Stories podcast, arguing that Bitcoin’s multiple use cases — from store of value to growth asset and liquidity driver — create a broader appeal than gold, which the market typically frames in a single light.

“There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio,” Seyffart said on the podcast. He emphasized Bitcoin’s roles as a store of value, a portfolio diversifier, a form of digital capital, and even a growth-risk asset, suggesting that the crypto may attract a wider spectrum of investors than gold over time. While gold has historically served as a hedge against monetary debasement, Bitcoin’s evolving narrative as both a digital asset and a potential macro hedge underpins the case for larger ETF demand in the years ahead.

Key takeaways

  • Bitcoin ETFs could grow to exceed gold ETFs in total assets under management as demand broadens beyond the traditional “digital gold” story, according to James Seyffart, a Bloomberg ETF analyst.
  • March ETF flows show divergent momentum: U.S. spot Bitcoin ETFs attracted about $1.32 billion in net inflows, while U.S. gold ETFs recorded net outflows of roughly $2.92 billion.
  • A single-day move underscored fragility in precious metals: GLD, the flagship gold ETF, posted a $3 billion withdrawal on March 4, the largest daily outflow in more than two years.
  • Longer-run macro signals remain mixed, with data suggesting a rotation dynamic between gold and Bitcoin rather than a single clear trend; Fidelity highlighted a historical pattern of leadership rotating between the two assets.

Flow dynamics in March: what they reveal about narrative shifts

The contrast in March ETF flows underscores shifting investor appetites for duration, liquidity, and narrative potential. Gold ETFs in the United States posted net outflows totaling about $2.92 billion in March, signaling renewed challenges for the traditional safe-haven metal in a period of evolving macro cues. In the same month, US spot Bitcoin ETFs drew approximately $1.32 billion in net inflows, illustrating a growing appetite for crypto exposure in diversified portfolios.

The divergence sits against a broader context in which Bitcoin and gold have moved more cohesively in recent weeks despite the divergent flows. The data points to a market that is re-evaluating the roles of these two hedges and growth assets in a landscape of persistent inflation concerns, evolving monetary policy expectations, and expanding acceptance of crypto-based investment products.

Gold’s pullback and retail versus institutional dynamics

Several pressures shaped gold’s March performance. The largest daily outflow in over two years hit GLD on March 4, reflecting sell-side and perhaps macro rotation pressures that have periodically punctured the gold regime. Meanwhile, more broad-based BIS data — cited by Cointelegraph — show retail gold purchases tripling over the past six months, while Wall Street selling has accelerated over the last four months. The juxtaposition implies a nuanced narrative: retail demand remains resilient even as institutional appetite shifts toward crypto exposure and related investment vehicles.

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These dynamics sit alongside anecdotal expectations that a growing cadre of investors view Bitcoin as a “growth risk asset,” complementary to its role as a hedge-friendly reserve. The evolving taxonomy — Bitcoin as a stores of value, digital currency with intrinsic scarcity, and liquidity-rich growth asset — contributes to a broader array of reasons to own a Bitcoin ETF beyond simply “digital gold.”

Price action and broader market context

As of publication, Bitcoin traded around $66,918, down about 8% over the prior 30 days, according to CoinMarketCap data. Gold hovered near $4,676 per ounce, down about 8.25% over the same period, per GoldPrice metrics. The near-term move preserves the sense that both assets have faced headwinds in a mixed macro backdrop, yet the flow data suggests that investor interest in Bitcoin ETFs remains persistent and possibly expanding even as gold faces episodic outflows.

The longer-term rotation story received some color from Fidelity Digital Assets analyst Chris Kuiper. In December 2025, Kuiper noted that historically gold and Bitcoin have rotated leadership, with gold performing strongly at times and Bitcoin catching up in others. That framework remains relevant as market participants weigh regulatory clarity, ETF availability, and the evolving ecosystem around Bitcoin-based investment products.

Implications for investors and markets

The potential overtaking of gold ETFs by Bitcoin ETFs in AUM would mark a notable shift in how investors allocate capital in search of diversification, liquidity, and growth exposure. If Bitcoin ETFs continue to capture inflows beyond the “digital gold” narrative, the market could see a broader base of participants embracing crypto exposure through regulated vehicles. This would not only change the composition of ETF portfolios but could also influence liquidity, product development, and the pace at which financial institutions bring more crypto-enabled offerings to retail and high-net-worth investors alike.

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From a portfolio-management perspective, the idea of Bitcoin acting as hot sauce in a diversified mix is persuasive for those seeking a growth-oriented, liquidity-rich sleeve within a broader asset allocation. Yet the data also underscores the need for caution and continued monitoring of regulatory developments, product approvals, and market structure changes that shape the appeal and risk profile of spot BTC ETFs.

In practical terms, readers should watch ETF inflow trends in the coming quarters, the rate of new product approvals, and the evolving evidence on how Bitcoin-based funds perform relative to gold during different macro regimes. The March data points demonstrate that the narrative around Bitcoin ETFs is gaining traction in investor discourse, even as gold maintains its own complex set of drivers and vulnerabilities.

Beyond price moves, the debate now centers on whether Bitcoin ETFs can sustain and broaden their appeal to a broader investor universe — from traditional equity and bond strategists to macro hedge funds and retail savers seeking diversified exposure. If inflows continue and more products arrive, the BTC ETF story may transition from a niche crypto offering to a core component of diversified portfolios.

What matters next is the trajectory of ETF approvals and listings, clear and consistent data on inflows across different regimes, and how macro factors like inflation momentum and monetary policy directions shape the risk-reward calculus for these funds. Investors should stay attentive to monthly flow prints, regulatory signals, and the evolving narrative around Bitcoin’s role in modern asset allocation.

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As the market awaits further clarity, the ongoing dialogue around Bitcoin’s ETF potential points to a future where crypto exposure becomes an increasingly standard instrument within traditional investment frameworks. The next few quarters will be telling, as inflows, product breadth, and price action converge to reveal whether Bitcoin ETFs can definitively eclipse gold ETFs in practical assets under management.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Bitcoin ETFs Will Be Bigger Than Gold ETFs, Says ETF Analyst

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Bitcoin ETFs Will Be Bigger Than Gold ETFs, Says ETF Analyst

Spot Bitcoin exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management (AUM) as investor demand expands beyond the traditional “digital gold” narrative, according to ETF analyst James Seyffart.

“There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio,” Seyffart said on the Coin Stories podcast published to YouTube on Friday. He pointed to Bitcoin’s (BTC) role as digital gold, a store of value, a portfolio diversifier, and a form of digital capital and property, adding that the market also views Bitcoin as a “growth risk asset.”

Seyffart explained that Bitcoin has “all these different ways” of being viewed, while gold only has “one of those things.”

“Our view is that Bitcoin ETFs will be larger than gold ETFs,” he added.

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Bitcoin ETFs are a “hot sauce” in the portfolio

“There are so many people that could use it. They could be viewing it to put in their portfolio because they want to bet on like a growth and liquidity trade,” he said. “It can be hot sauce in a portfolio in that way,” he added.

Bloomberg ETF analyst James Seyffart spoke to Natalie Brunell on the Coin Stories podcast. Source: Coin Stories

Bitcoin is often compared to gold due to its limited supply and perceived role as a hedge against monetary debasement. 

US-based gold ETFs recorded net outflows of $2.92 billion in March, while US spot Bitcoin ETFs attracted $1.32 billion in net inflows over the same period.

Gold and BTC have declined over the past 30 days

The largest US gold-backed ETF, GLD, recorded a $3 billion outflow on Mar. 4, the largest daily withdrawal in more than two years.

On Mar. 19, Cointelegraph cited data from the Bank for International Settlements (BIS) showing retail gold purchases have tripled over the last six months, while Wall Street selling has accelerated over the past four months.

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Related: Bitcoin ‘done’ with 85% crashes, says Cathie Wood amid new $34K target

Despite the divergence in ETF flows, both assets have moved broadly in tandem in recent weeks.

Bitcoin is trading at $66,918 at the time of publication, down 8.07% over the past 30 days, according to CoinMarketCap. Meanwhile, gold is trading at $4,676, down 8.25% over the past 30 days, according to GoldPrice data.

In December 2025, Fidelity Digital Assets analyst Chris Kuiper said that, “historically, gold and Bitcoin have taken turns outperforming. With gold shining in 2025, it would not be surprising if Bitcoin takes the lead next.”

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