PAXG Gains as Tokenized Gold Attracts Crypto Whiles Amid Volatility

Generated by AI AgentCoinSageReviewed byTianhao Xu
Monday, Jan 5, 2026 4:13 am ET1min read
PAXG
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BTC
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Aime RobotAime Summary

- PAXG tokenizes physical

gold
stored in LBMA-approved vaults, enabling fractional ownership and 24/7 trading.

- Institutional investors and crypto whales allocated $1.4B to PAXG in Q1 2025 amid crypto volatility and Bitcoin's 7% decline.

- PAXG's $1.6B market cap by December 2025 reflects gold's 65% annual surge versus traditional safe-haven demand.

- Tokenized gold outperforms ETFs by eliminating fees, offering direct redeemable ownership and DeFi integration.

PAX Gold (PAXG) is reshaping gold investment through blockchain technology.

Each token represents one ounce
of physical gold stored in LBMA-approved vaults. Crypto whales and institutions
increasingly adopted PAXG
during 2025's market turbulence. This pivot reflects
gold's 65% annual surge
versus Bitcoin's decline.

Why Are Institutional Investors Turning to PAX Gold?

Institutional demand for tokenized gold surged
during 2025's crypto volatility. PAXG's market cap
reached $1.6 billion
by December 2025, backed by 365,000 tokens.
The token combines gold's stability
with blockchain's accessibility.

Whales

acquired over $30 million
in tokenized gold assets like PAXG within weeks. This reallocation
addressed Bitcoin's 7% decline
through gold's traditional safe-haven status.
Tokenization enables 24/7 trading
and DeFi integration unavailable with physical bullion.

How Does PAXG Compare to Traditional Gold Investments?

PAXG offers distinct advantages over conventional gold products. It

eliminates management fees
charged by gold ETFs while providing direct ownership.
Investors can purchase fractional amounts
unavailable with physical bars.

The token trades continuously
unlike traditional markets. Each PAXG is
auditable and redeemable
for physical gold.
Lower entry barriers
make gold exposure accessible to retail investors. That flexibility
fueled PAXG's growth
alongside gold's price rally.