Why is the iShares Bitcoin Trust ETF (IBIT) outperforming the S&P 500 in what is supposed to be a risk-off market environment?
Bitcoin crossed the $90,000 level Tuesday for the first time in a month, while Bitcoin ETFs like the $50 billion IBIT jumped more than 4%, closing in on the breakeven price point for the year.
Compare this to the broad stock market proxy and largest exchange-traded fund in the world, the Vanguard S&P 500 ETF (VOO), which is still down 10% year to date, and the recently high-flying tech sector’s steep decline of roughly 17% through Tuesday’s session.
How can volatile Bitcoin ETFs like IBIT outperform U.S. stocks amid trade war escalation fears and heightened economic and market uncertainty?
As noted here at etf.com earlier this month, the world’s most valuable cryptocurrency has diverged from the tech-heavy Nasdaq-100 and broad equity markets in 2025 to act more like a safe haven than a feared digital asset when markets turn volatile.
While still performing far below the lofty heights of precious metals like gold in 2025, Bitcoin is finally acting like the “digital gold” moniker it was previously given.
In 2025, spot Bitcoin ETFs like IBIT have demonstrated notable resilience and, at times, outperformance compared to traditional equity benchmarks such as the S&P 500.
As of Tuesday, IBIT has gained 4% over the past month, while VOO and other S&P 500 ETFs have declined by roughly 8% during the same period.
This performance divergence suggests that Bitcoin is increasingly being viewed as a potential safe-haven asset amid market volatility. Several factors contribute to this perception.
Bitcoin’s decentralized nature and capped supply of 21 million coins make it attractive to investors seeking assets that are less susceptible to inflation and centralized control.
The rapid growth of spot Bitcoin ETFs, such as IBIT, which reached $50 billion in assets under management faster than any other ETF, indicates growing institutional interest.
During recent market selloffs, Bitcoin’s performance has been comparable to traditional safe-haven assets like gold and long-term Treasury bonds on a risk-adjusted basis.
While its recent performance is impressive, especially considering the volatile market environment, investors should note that Bitcoin’s safe-haven status is still evolving. While it has shown resilience recently, its historical volatility remains a concern for many investors.
