Investment Revolution: JPMorgan Finds Bitcoin Trumps Gold In Portfolio Weighting

Bitcoin now beats gold in how much investors put it in their portfolios, says a JPMorgan employee named Nikolaos Panigirtzoglou. He says when we consider how unpredictable they are, Bitcoin’s share in investors’ portfolios is 3.7 times more than gold’s.

The expert also mentioned that more than $10 billion has flown into Bitcoin exchange-traded funds (ETFs) since they started in January. He thinks the Bitcoin ETF market size could be as big as $62 billion compared to gold.

Another report from the same JP Morgan folks says that the market for Bitcoin ETFs without all the fancy stuff could get as big as $220 billion in the next two to three years.

“We guess that $220 billion more will pour into ETFs in the next three years. This could shake up Bitcoin’s price because of how much it multiplies capital,” said Devin Ryan’s analysts.

Bitcoin ETFs are helping and improving the crypto market. The biggest cryptocurrency, Bitcoin, got a big boost in February, gaining over 45% in value. Sales of Bitcoin ETFs reached $6.1 billion last month, up from $1.5 billion in Jan.

Bitcoin ETFs Surge Amid Halving

The most money coming into spot ETFs in one day hit more than a billion bucks on March 12. Analysts reckon this amount will increase once GBTC’s money outflows calm down.

With Bitcoin halving coming up in about a month, the amount of BTC available each day will be sliced in half. This might make people want BTC even more and cause a shortage within six months, according to Ki Young Ju, the CEO of CryptoQuant, a company that studies cryptocurrency.

BTC supply shock. Source: Ki Young Ju on X

Following an extended period of crypto downturn spanning almost three years, the approval of a spot Bitcoin ETF emerged as a pivotal factor propelling BTC’s monumental price surge, surpassing the previous all-time high from the last bull cycle of over $69,000. This surge also coincides with increased institutional adoption, notably led by BlackRock, the world’s largest asset manager.

Out of 11 okayed ETFs, the best nine received lots of cash, even though Grayscale’s GBTC ETF lost millions.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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