JPMorgan says Institutional Investors Are Moving From Gold To Bitcoin

According to JPMorgan’s analysis, institutional investors prefer bitcoin over gold. The organization stated that bitcoin interest is inspired not only by younger retail investors but also by institutional investors.

Gold ETF Investors Switching to Bitcoin

According to JPMorgan’s research, Grayscale’s bitcoin trust witnessed collective inflows through October, whereas gold exchange-traded funds (ETFs) witnessed “modest outflows” after mid-October. “This diversity allows assistance to the belief that some investors that earlier invested in gold ETFs such as family offices, may be seeing at bitcoin as an option to gold.

The analysts maintained that

As we had highlighted in our previous [report] of [Oct. 23], the potential long-term upside for bitcoin is considerable if it competes more intensely with gold as an ‘alternative’ currency given that the market cap of bitcoin would have to rise 10 times from here to match the total private sector investment in gold via ETFs or bars and coins.

JPMorgan’s Global Markets Strategy team published a report on Friday that addresses bitcoin. It also analyzes the course trajectories for Grayscale Bitcoin Trust (GBTC) and gold exchange-traded funds (ETFs).

The report further elaborated that “Corporate endorsements of bitcoin and in particular the endorsement by Paypal a couple of weeks ago appear to have propagated further demand for bitcoin”

11/06/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $9.1 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/F3bEvvZqLq
— Grayscale (@Grayscale) November 6, 2020

According to the report, both retail and institutional investors are pushing demand for Grayscale’s bitcoin trust. The inherent long-term advantage for bitcoin is “considerable” if it encounters “more strongly with gold as an ‘alternative’ money. However, bitcoin’s market cap would have to increase to match the total private sector investment in gold ETFs or bars and coins.