BIS: Retail Investors Bought $70 Billion in Gold ETFs in Six Months

In a notable shift, retail investors have poured over $70 billion into gold exchange-traded funds (ETFs) in the past six months, while institutional investors have sold approximately $1 billion during the same period. This trend was highlighted by analysts from The Kobeissi Letter, referencing data from the Bank for International Settlements (BIS).

From the latter half of 2025 through early 2026, the investment in gold ETFs by retail investors surged threefold, jumping from $20 billion to $70 billion in total sales. Experts noted that retail interest in precious metals has intensified significantly, with market dynamics favoring small investors.

Conversely, institutional selling began in November 2025 and intensified following a downturn in the precious metals market in January. Gold prices have fallen by 9%, and silver has seen a more substantial drop of 34% since then, largely attributed to over-leveraged positions among small speculators leading to forced liquidations.

The BIS indicated that this decline in precious metal values was not due to fundamental shifts but rather a reaction to changing expectations about U.S. monetary policy. The dollar has strengthened by 4.7% since late January, contributing to the market's volatility.

In the context of these developments, the cryptocurrency market has experienced a significant decline, with capitalization down by about 43% since its October peak, reflecting a waning interest among retail traders in digital assets.

The Federal Reserve recently decided to maintain interest rates between 3.5% and 3.75%, amid ongoing fluctuations in the financial markets.