The price of gold has surged almost 29% this year, solidly beating the 3.8% gain in bitcoin (BTC). Even so, that’s failed to deter investors eager to add the largest cryptocurrency to their portfolios.

BlackRock’s spot bitcoin ETF (IBIT) has attracted a net $6.96 billion in inflows since the start of the year, the sixth-largest amount of all exchange-traded funds, according to data from Bloomberg’s senior ETF analyst, Eric Balchunas. SPDR Gold Trust (GLD), the world’s largest physically backed gold ETF, slipped to the number seven position Monday with net inflows of $6.5 billion.

IBIT’s outperformance indicates institutions’ persistent confidence in bitcoin’s long-term prospects despite the relatively dour price performance. Gold has climbed $3,384, largely due to wrangles over international trade, renewed inflation concerns and geopolitical tensions. While BTC, called by some as digital gold, hit a record high in January, it’s now more than 10% below that level.

«To take in more cash in that scenario is really good sign for long term, and inspires confidence in our call that BTC ETFs will have triple gold’s aum in 3-5yrs,» Balchunas said on X.

Japanese investment firm Metaplanet (3350) said it will sell a second $25 million of bonds to EVO FUND to fund further purchases of bitcoin (BTC).

The Tokyo-based company agreed to issue the debt only days after selling the same amount of bonds to the same buyer. The bonds, which will bear no interest, have a redemption date of Nov. 6, according to a Metaplanet post on X on Wednesday.

In a separate statement, Metaplanet said it bought 555 BTC for 7.63 billion yen ($53.5 million), taking its total holdings to 5,555. That is the largest bitcoin stash among public companies outside of North America, according to Bitcoin Treasuries.

Metaplanet shares added about 11.5% to close at 477 yen ($3.33) on Wednesday.

Bitcoin surged above $97,000 late Tuesday, then slid to $96,500 in Asian hours Wednesday as India conducted airstrikes in parts of Pakistan to intensify tensions from the past few weeks.

A planned meeting to discuss U.S. and China tariffs sent risk assets higher in the hours since the U.S. stock market closed on Wednesday, as reported, but those gains reversed as news of India’s “Operation Sindoor” emerged in the early hours.

Traders expect to see more volatility in the days ahead as the regional tussles further damage risk-taking sentiment among traders, though eventually leading to a move higher as bitcoin is perceived as a hedge.

“Volatility in the markets is soaring as bitcoin surges to $97K from the intensifying conflict between India and Pakistan,” Nick Ruck, director at LVRG Research, told CoinDesk in a Telegram message.

“This is in addition to plans by the US and China to discuss a trade deal this week. This upward movement came as a surprise, as investors were de-risking positions ahead of a decision by the Fed about changing interest rates. Geopolitical uncertainty and macroeconomic volatility may send Bitcoin to new highs as a hedge against greater market risks,” Ruck added.

Cardano’s ADA led gains among majors with a 3% bump in the past 24 hours, adding to gains from Tuesday. Dogecoin (DOGE), XRP, BNB Chain’s BNB and ether (ETH) added less than 2%, while legacy tokens Bitcoin Cash (BCH) and Litecoin (LTC) surged as much as 10%.

The broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market cap, added nearly 2%.

Meanwhile, some traders said bitcoin’s surge in the past weeks was coupled with a spike in active addresses — a metric of wallet activity that some consider a sign of oncoming volatility.

“Bitcoin’s recent rally to the $87,500–a spike in active addresses backs $97,500 range (now at a 6-month high) pointing to rising demand and renewed network activity,” Ryan Lee, chief analyst at Bitget Research, told CoinDesk in a Telegram message.

“This surge supports a bullish case for a potential breakout toward $100K, though confirmation depends on multiple indicators aligning,” Lee said, mirroring separate analyst commentary from the past week.

“Traders should also monitor macro conditions, Bitcoin dominance, currently nearing the 55% mark, and rising hash rates. Meanwhile, Ethereum trades in a narrower $1,600–$1,900 range, still lagging behind BTC’s momentum, with sentiment more muted amid fewer catalysts and cautious capital rotation into altcoins,” Lee added.