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July 19, 2024
PI Global Investments

Bitcoin Surpasses Gold in Investor Portfolios Allocation: JP Morgan

Bitcoin has now surpassed gold in investor portfolio allocation after accounting for volatility, a JP Morgan analyst claims

According to reports, Nikolaos Panigirtzoglou, managing director at JPMorgan, stated that after accounting for volatility, the proportion of Bitcoin in investor portfolios is 3.7 times higher than that of gold.

Using gold as a benchmark, the analyst projected that the potential market size for Bitcoin exchange-traded funds (ETFs) might reach $62 billion, highlighting the noteworthy inflows of over $10 billion into spot ETFs since their legalization in January. 

According to a different JPM Securities report, in the next two to three years, the market for spot Bitcoin ETFs might reach a size of $220 billion.

Bitcoin ETFs have shown to be beneficial for the whole cryptocurrency market with the biggest cryptocurrency in the world rising by more than 45% in market capitalization in February. Spot Bitcoin ETF net sales increased to $6.1 billion in February from $1.5 billion in January.

On March 12, the biggest daily inflows to spot Bitcoin ETFs reached a peak of over $1 billion, and experts predict that after withdrawals from the Grayscale Bitcoin Trust ETF cease, this amount could increase much more.

According to Ki Young Ju, CEO of the cryptocurrency analytics company CryptoQuant, the Bitcoin halving, which is scheduled for a little over a month from now, will result in a halving of the daily supply of BTC. This will increase demand and perhaps cause a supply crisis over the next six months.

After a lengthy crypto winter, Bitcoin ETF approvals sparked a surge, propelling BTC beyond its previous all-time high of $72,000 and paving the way for institutional adoption, spearheaded by BlackRock.

Also Read: Bitcoin Price Drop Causes $679M in Liquidations in 24 Hours

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