PAX Gold vs SPDR Gold Shares ETF

PAX Gold vs SPDR Gold Shares ETF Overview

SPDR Gold Shares (GLD) is the largest gold ETF with ~$70B-$90B AUM in 2024-2026 as gold prices hit record highs. PAX Gold (PAXG) is a tokenized gold product issued by Paxos, backed 1:1 by LBMA-accredited gold vaulted in London, with ~$500M-$1B in market cap. PAXG's market cap is 0.5-1.5% of GLD's AUM. The comparison is directly functional: both give holders exposure to physical gold, backed 1:1 (or near-1:1) by vaulted bullion. GLD charges 0.40% annual expense ratio; PAXG charges a small on-chain transaction fee and small custody fees. PAXG is redeemable for physical bars down to 400oz; GLD is not retail-redeemable. For on-chain allocators, PAXG functions as 'gold primitive' usable as DeFi collateral — a capability GLD lacks entirely.

Frequently Asked Questions

How does PAXG differ from GLD?

Both are 1:1 gold-backed. PAXG is on-chain (usable as DeFi collateral, transferable 24/7, redeemable for physical bars). GLD is a US-listed ETF with lower redeemability but more regulatory familiarity.

Which is larger?

GLD at $70-90B AUM dwarfs PAXG's $500M-$1B market cap by 70-180x. But PAXG's on-chain utility is not captured by GLD.