A quiet rotation is unfolding in U.S. markets and it's one worth watching. Over the past five weeks, Bitcoin (BTC-USD) ETFs have pulled in more than $9 billion in fresh inflows, led by BlackRock's iShares Bitcoin Trust ETF IBIT. At the same time, gold-backed ETFs have shed over $2.8 billion, Bloomberg data shows.

Investors appear to be rethinking their safe-haven strategies just as U.S. fiscal concerns creep back into the spotlight from ballooning deficits to Moody's stripping the U.S. of its last AAA rating. Bitcoin recently touched a new record high of $111,980, supported by progress on stablecoin regulation and broader macro uncertainty. Standard Chartered's Geoff Kendrick points out that Bitcoin may now serve as a hedge on two fronts: against private-sector shocks like bank failures, and against government-linked risks, such as threats to Fed independence.

What's more, its price movements have started to decouple from the Nasdaq, the dollar, and even gold. As Pepperstone's Dilin Wu put it, Bitcoin is beginning to behave less like a risk-on tech trade and more like a standalone asset class. Gold still leads on performance this year up 25%, compared to Bitcoin's 15%.

But flows tell a different story. More capital is moving into Bitcoin, possibly signaling broader acceptance of its role in modern portfolios. Jefferies strategist Christopher Wood summed it up: I remain bullish on both gold and Bitcoin They remain the best hedges on currency debasement in the G7 world.

In other words, investors aren't ditching gold they're making room for Bitcoin too.