Bitcoin Surpasses Gold in Investors’ Portfolios

A new report published by analysts at JPMorgan has revealed that the total number of Bitcoin allocations in investor portfolios has surpassed gold. The report noted that after volatility adjustment, inflows indicate a 3.5 times increase in Bitcoin allocations in comparison to gold. The observation was noticed by Nikolaos Panigirtzoglou, the managing director of JPMorgan.

A Cointelegraph report on the matter indicated the importance of more than $10 billion inflows into Bitcoin spot ETFs. The analyst further stated that the Bitcoin ETF market has the potential to print $62 billion while referencing gold as the benchmark.

Spot Bitcoin Inflows

JPM Securities issued another report regarding spot Bitcoin ETF inflows projecting a potential target of $220 billion during the upcoming 2-3 years.

The analysis indicated that the analysts expect $220 billion in incremental inflows to pour into spot Bitcoin ETFs in upcoming years. The analysis further stated the impact on Bitcoin price with reference to multiplier effect.

Bitcoin ETFs have remained in net positive since approval in January this year. On this account, the flagship crypto gained 45% in market cap for the second month of 2024.

JPMorgan’s Report on Spot Bitcoin ETF

The analysis shared by analysts at JPMorgan indicates that net sales for spot Bitcoin ETFs increases to $6.1 billion in February. The number continued to increase from $1.5 billion inflows recorded in January for the same investment product.  

The biggest daily inflow in spot Bitcoin ETF was recorded on 12th March, 2024 standing at $1 billion. Analysts opine that this number can increase once outflows from Grayscale Bitcoin Trust ETF seize.

At the time of publication, Bitcoin halving is just a month away. With the completion of the halving, the Bitcoin daily supply will be slashed by half. Such a phenomenon can increase demand on account of a supply crunch.

As per Ki Young Ju, the CEO at CryptoQuant recently posted on social media. Young noted that the supply crunch can impact Bitcoin price for the next six months.

After a long crypto winter lasting for 3 years, spot Bitcoin approval served as the main driving force for Bitcoin’s major price action. This month, Bitcoin printed a new ATH of $72K for the first time in history.

Analysts at Cointelegraph attributed the major price action of Bitcoin to institutional adoption with mega asset management firms joining the bandwagon such as BlackRock.

Young Ju posted his insights regarding spot Bitcoin ETF inflows on 22nd March. He noticed that the ETF net flows may continue to increase if the Bitcoin price moves in the other direction.

He referenced data projections from historical net flow trends. He observed that Bitcoin ETF demand rise around the time when crypto reaches support levels.

BitMEX Data Projection

On the other hand, data projections from BitMEX Research indicate that spot Bitcoin ETFs claim that spot Bitcoin ETFs are in negative net flows for the last 4 trading sessions. The analysts linked the decline to outflows from Grayscale Bitcoin Trust ETFs.

Speaking on the phenomenon, Young Ju noted that new Bitcoin whales that are purchasing spot ETF shares use cost basis of $56K.

At the same time, he projected big inflows to ETFs in case Bitcoin hits the cost-basis. Analysis shared by Cointelegraph Markets Pro, Bitcoin prices is changing hands between $62K and $68K for the past week.

The executive says a further decline with a maximum of 30%. The recent correction in Bitcoin was caused by increased volatility that analysts believe to be halving adjustments. However, a separate report published by CryptoQuant notes that the Bitcoin bull cycle has not maxed out yet.

The report indicates that inflows from new investors are still conservative and smaller gains comparison to previous market highs. Historically speaking halving has served as a significant driver of the Bitcoin price incline that morphs into parabolic uptrend.