[ad_1]
© Reuters. Are investors switching from gold to Bitcoin? JPMorgan responds
The combination of year-to-date outflows from gold exchange-traded funds (ETFs) and significant inflows into ETFs raises questions about whether investors are diverting their funds from the precious metal to the world’s largest cryptocurrency.
Due to strong interest in spot Bitcoin ETFs, BTC funds have seen $10.6 billion in inflows so far this year, compared to $7.6 billion outflows for physical gold ETFs.
However, JPMorgan strategists believe this is not the case as investors shift funds from gold to Bitcoin.
“We disagree and instead believe retail investors and individuals have been promoting both gold and Bitcoin since the start of the year, rather than switching from the former to the latter,” analysts said in a note.
Analyzing ETF flows alone could lead to a misleading perspective, potentially underestimating individuals and retail investors’ acquisition of gold via bars and coins while overestimating their investment in Bitcoin.
JPMorgan strategists highlighted a notable trend in which retail investors are moving from holding Bitcoins in digital wallets “to the convenience and regulatory protection of the new spot Bitcoin ETFs.”
“In addition to retail investors, speculative institutional investors such as hedge funds, including momentum traders like CTAs, also appear to have driven the rally by buying both gold and Bitcoin futures since February, perhaps even more than retail investors,” analysts wrote.
[ad_2]
Source link
