Crypto News– Bitcoin, with the ticker BTC, has now surpassed gold in terms of investor portfolio allocation when adjusted for volatility, as per analysis from a JP Morgan analyst.
Bitcoin Surpasses Gold in Allocation Within Investor Portfolios
Nikolaos Panigirtzoglou, managing director at JPMorgan, reportedly stated that when volatility adjustments are considered, Bitcoin’s presence in investor portfolios is 3.7 times greater than that of gold.
Panigirtzoglou also noted the significant inflow of more than $10 billion into Bitcoin exchange-traded funds (ETFs) since the beginning of the year, highlighting the potential for the Bitcoin ETF market to reach $62 billion, using gold as a benchmark.
Additionally, a report from JPM Securities predicts that the spot Bitcoin ETF market could expand to as much as $220 billion in the next two to three years. The introduction of Bitcoin ETFs has had a positive impact on the crypto market, with the world’s largest cryptocurrency witnessing a remarkable 45% increase in market capitalization in February alone. In February, net sales for spot Bitcoin ETFs surged to $6.1 billion, compared to $1.5 billion in January.
Investors Favor Bitcoin Over Gold in Portfolio Allocations
The largest daily inflow for spot ETFs reached over a billion dollars on March 12, with analysts anticipating further increases once outflows from the Grayscale Bitcoin Trust (GBTC) cease.
As the Bitcoin halving event approaches in just over a month, cutting the daily BTC supply in half, there’s a potential for increased demand and a subsequent supply crisis within the next six months, according to Ki Young Ju, CEO of crypto analytics firm CryptoQuant.
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