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CZ Sparks Gold ETF Discussion: History, Growth, and Leading Funds

Author: Content Editor
The CEO of Binance, Changpeng Zhao, sparked a discussion about the history and appeal of gold-backed exchange-traded funds (ETFs). Gold ETFs were first launched in 2004 with SPDR Gold Shares (GLD) and have since grown in popularity, reflecting increased demand for gold as a hedge against economic uncertainties. GLD quickly attracted over $1 billion in inflows after its launch and temporarily became the largest ETF in the world in 2011. The market for gold ETFs has expanded significantly, with over 90 active gold-backed ETFs globally. These ETFs offer convenient and regulated exposure to gold, attracting investors seeking transparency and liquidity. The largest gold-backed ETFs are SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), together accounting for a majority of gold ETF investments. Smaller ETFs cater to different financial capacities while still providing exposure to physical gold. The top seven gold-backed ETFs collectively hold $129 billion in assets under management (AUM). Gold ETFs have become essential components of diversified portfolios, serving as risk management tools during inflation and market volatility. They continue to demonstrate their relevance and provide a transparent and liquid means of exposure to gold.

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