The tokenized gold sector has surpassed $6 billion in market capitalization as of mid-February 2026, marking a significant milestone in real-world asset (RWA) tokenization.
This growth reflects strong investor demand for digital exposure to physical gold amid broader market volatility, with the sector adding over $2 billion year-to-date (YTD). Key drivers include major tokens like Tether Gold (XAUT) (around $3.6B+ dominance) and PAX Gold (PAXG) around $2.3B, which together account for the vast majority of the market.
Over 1.2 million ounces of physical gold back these assets, and the broader tokenized commodities category has hit similar highs around $6.1B+. This surge positions tokenized gold as one of the fastest-growing segments in crypto RWAs, appealing as a stable, on-chain alternative to traditional bullion—especially during periods of uncertainty in equities and crypto.
Meanwhile, U.S. spot Bitcoin ETFs recorded substantial net outflows of $410 million approximately $410.37M per reports on February 12, 2026—the second consecutive day of redemptions, bringing two-day totals to around $686M. Leading the exits were BlackRock’s IBIT ($157M outflow), Fidelity’s FBTC ($104M), and others like Grayscale’s GBTC.
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No major ETF saw inflows that day. These outflows coincide with:A major $2.5B Bitcoin options expiry on February 13. Broader bearish sentiment, including analysts from Standard Chartered slashing BTC targets citing macro pressures, weaker risk appetite, and fading Fed cut expectations.
Bitcoin’s price under pressure, with ETF assets under management dropping sharply from 2025 peaks from ~$170B to around $80-85B range in some trackers. Weekly and monthly flows have turned negative in 2026 so far, testing institutional commitment despite long-term cumulative inflows remaining strong over $50B+ historically.
Tokenized gold’s rise could signal a rotation toward more stable RWAs in uncertain times. This milestone with tokenized commodities hitting $6.1–$6.126B, up 53% in recent weeks and over 360% year-on-year underscores accelerating adoption of real-world asset (RWA) tokenization, particularly gold-backed tokens like Tether Gold (XAUT) ($3.6B) and PAX Gold (PAXG) (~$2.3B), which dominate >95% of the segment and back over 1.2 million physical ounces.
Safe-haven rotation and demand driver — Amid gold’s rally (spot prices around $4,965–$5,114/oz, with records above $5,000+), investors are flocking to on-chain gold for its liquidity, instant settlement, fractional ownership, and blockchain benefits (no physical storage hassles).
This positions tokenized gold as a “digital gold” alternative that’s outperforming volatile crypto in risk-off environments. Tokenized commodities’ boom contributes to the tokenized assets sector (total ~$328B+), signaling mainstream integration of blockchain with traditional finance.
Analysts project explosive upside, potentially to trillions in tokenized RWAs by 2028–2030. High concentration (two issuers control most), custody/regulatory uncertainties, and potential liquidity mismatches if redemptions spike could test resilience, especially with physical gold price volatility.
Even crypto-native figures e.g., early Bitcoin supporters buying millions in PAXG reflect tactical moves toward stability. This growth reflects flight to tangible, low-volatility assets during uncertainty.
Impacts of Bitcoin ETF Outflows ($410M Daily)
The $410M+ outflows led by BlackRock’s IBIT ~$158M, Fidelity’s FBTC ~$104M marked continued pressure, part of multi-day/week redemptions amid broader negative flows like $686M+ over two days earlier, billions cumulatively since late 2025 peaks.
BTC traded around $65,000–$68,000 down sharply from 2025 highs near $126,000–$127,000, a ~50% drop in some views, exacerbated by macro headwinds, a $2.5B BTC options expiry (February 13), and fading Fed cut hopes. Standard Chartered slashed its 2026 BTC target to $100,000; warning of dips to $50,000 before recovery, citing capitulation risks.
Outflows signal reduced risk appetite among large allocators not just retail panic, with ETFs losing billions recently. This tests Bitcoin’s “digital gold” narrative—it’s behaving more as a high-beta risk asset correlated with equities/liquidity, not a consistent hedge like physical gold.
Contributes to bearish vibes, with ETF AUM drops, miner selling, and leverage unwinds amplifying downside. Weekly/monthly crypto fund flows turned heavily negative, contrasting gold’s inflows. While historical inflows remain strong overall, persistent exits question institutional conviction in BTC during prolonged uncertainty.
Investors rotating from high-volatility Bitcoin exposure into stable, tokenized safe havens like gold. Gold and its digital versions absorbs “fear trade” demand amid tariffs, policy shifts, geopolitics, and macro risks, while Bitcoin faces capitulation as a liquidity-sensitive asset.
This could: Accelerate RWA/tokenized gold adoption as a bridge between crypto and tradfi. Pressure BTC short-term (potential further downside to $50K–$60K levels per some forecasts) but set up rebounds if macro stabilizes or liquidity returns. Highlight evolving portfolio strategies: Gold for defense, BTC for growth/speculation.
It underscores 2026’s theme—safe-haven preference trumping risk assets in turbulent times, with tokenized gold emerging as a key winner in the digital economy.