Gold-backed cryptocurrency minting hits three-year high, gold ETF demand surges

TechFlow, May 4 — According to CoinDesk, the World Gold Council's latest report shows global gold demand reached 1,206 tons in the first quarter of 2025, the strongest start since 2016. Demand for gold-backed cryptocurrencies—digital tokens pegged to physical gold, with each token backed by an equivalent amount of physical gold—surged 77% month-on-month to $1.27 billion in transfer volume, while minting volume exceeded $80 million, marking a three-year high. Over the same period, investment demand for gold ETFs doubled to 552 tons, driving the quarterly average gold price to a record high of $2,860 per ounce. Notably, although central bank gold purchases slowed to 244 tons, institutional investors' appetite for gold remained strong, particularly with robust bar and coin demand in the Chinese market.