Bitcoin surpasses gold in many investors' portfolios

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

A recent report by JP Morgan, the largest bank in the United States, shows that Bitcoin surpasses gold in investors' portfolio allocation. Specifically, the world's largest cryptocurrency has an allocation 3.7 times larger than 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 this 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 ETF capital has surged, while money is flowing out of gold ETFs. But JP Morgan says that cannot be relied on to conclude that 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 heavily than retail investors, with $7 billion in Bitcoin futures and $30 billion in gold futures.

However, the full potential of Bitcoin ETFs has yet to be 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 to the cryptocurrency market, with the world’s largest Bitcoin gaining more than 45% of its market capitalization in February alone and then quickly hitting consecutive peaks in March. Net turnover of spot Bitcoin ETFs increased 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 this figure could increase further in the coming time.

In just over a month, Bitcoin's halving, an event that reduces the reward miners receive by half, will take place. This makes mining more difficult, creating a shortage of supply, driving up demand even more. 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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