JPMorgan’s Investor Portfolios Favor Bitcoin Over Gold
Bitcoin has emerged as a more attractive investment option than gold, according to a recent study conducted by JPMorgan. The analysis, carried out by Nikolaos Panigirtzoglou, a managing director at the bank, reveals that investors are now allocating 3.7 times more funds to Bitcoin compared to gold, when adjusted for volatility.
This shift in investor sentiment can be attributed to the substantial inflows into spot Bitcoin ETFs. Since the approval of these ETFs in January, over $10 billion has been invested in Bitcoin, with market experts predicting that this figure could reach $62 billion in the near future. JPM Securities goes a step further and estimates that the spot Bitcoin ETF market could expand to a staggering $220 billion within the next two to three years, a development that could have a significant impact on Bitcoin’s price.
The positive effects of this influx of investments are already apparent, as Bitcoin’s market cap saw a remarkable 45% increase in February alone. Net sales for spot Bitcoin ETFs reached $6.1 billion during the same month, a significant jump from the $1.5 billion recorded in January.
March 12 witnessed record-breaking inflows, with a staggering $1 billion invested in Bitcoin in a single day. Analysts anticipate that these numbers will continue to rise, especially with significant upcoming events such as the Bitcoin halving. This event, which will reduce the daily supply of Bitcoin by half, could potentially lead to a supply crisis within the next six months, according to Ki Young Ju, CEO of CryptoQuant.
Bitcoin’s recent resurgence comes after a prolonged crypto winter that lasted nearly three years. The approval of spot Bitcoin ETFs has proven to be a pivotal moment for the cryptocurrency’s price, as it surpassed its previous all-time high of over $69,000 and garnered increased institutional adoption, led by industry giant BlackRock.
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