Bitcoin surpasses gold in many investors' portfolios

According to JP Morgan, cryptocurrencies are allocated 3.7 times larger than bullion in investment portfolios.

A recent report by JP Morgan, the largest bank in the United States, shows that Bitcoin has surpassed gold in investors' portfolio allocations. Specifically, the world's largest cryptocurrency has an allocation 3.7 times larger than that of gold bars.

This is also reflected in the significant inflow of more than $10 billion into spot Bitcoin ETFs since their approval in January. According to the unit, the potential Bitcoin ETF market size could reach $62 billion, using gold as a benchmark.

However, JP Morgan noted that this does not mean that people are selling gold to buy digital assets. The bank said that institutional and individual investors have bought both gold and Bitcoin this year, not switching between the two assets as some analysts have suggested.

In fact, Bitcoin ETFs have surged while money has flowed out of gold ETFs. But JP Morgan says that doesn’t mean investors are shifting from precious metals to cryptocurrencies.

Observations from the largest bank in the US show that financial advisory firms have been investing in both gold and Bitcoin futures since February, more than retail investors, with $7 billion in Bitcoin futures and $30 billion in gold futures.

However, the potential for Bitcoin ETFs to attract capital has yet to be fully realized. Another report from JPM Securities predicts that the spot Bitcoin ETF market could grow to $220 billion in the next two to three years. “This could also have a significant impact on Bitcoin prices,” the report said.

Exchange-traded funds have proven to be a boon for the cryptocurrency market, with the world’s largest Bitcoin gaining more than 45% of its market capitalization in February alone and then hitting consecutive highs in March. Net turnover of spot Bitcoin ETFs rose to $6.1 billion in February, an impressive increase from $1.5 billion in the first month of the year.

Last week, inflows into the largest funds peaked at more than $1 billion on March 12. Analysts believe that number could increase further in the coming time.

In just over a month, Bitcoin will undergo a halving, an event that reduces the rewards miners receive by half. This will make mining more difficult, creating a shortage of supply, further driving up demand. Ki Young Ju, CEO of crypto analytics firm CryptoQuant, predicts a supply crunch in the next six months.

Tieu Gu (according to CoinDesk , CoinTelegraph )

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