Gold has significantly outperformed bitcoin since the launch of spot bitcoin ETFs in January 2024. Gold's price increased by 58%, while bitcoin dropped by 12%. Mark Connors, a macro strategist and founder of Risk Dimensions, attributes this to institutions still viewing bitcoin as too immature for serious investment. Central banks and large asset allocators prefer gold due to its established trust and infrastructure. While bitcoin is designed as a decentralized currency, it lacks the historical precedent and trade use that gold has, making it less appealing for institutional investment. The gap between bitcoin and gold has widened recently, with bitcoin falling over 30% from its July peak, while gold rose above $4,100 per ounce. Connors links bitcoin's price drop to a global liquidity squeeze, influenced by U.S. Treasury spending delays. During the recent government shutdown, liquidity tightened, impacting risk assets like bitcoin more acutely than gold. Despite potential signs of returning liquidity, Connors warns that bitcoin is unlikely to replace gold in institutional portfolios anytime soon, as large institutions prioritize assets that align with their mandates. Emerging markets' trust in fiat currencies may eventually boost bitcoin's appeal as a neutral asset, but the transition will take time. Institutions aren't simply choosing between gold and bitcoin; they are selecting what fits their investment strategies. The recent divergence in performance highlights the challenges ahead for bitcoin in becoming a global reserve asset.