JPMorgan: Bitcoin surpasses gold as preferred asset in investor portfolios

Bitcoin’s recent surge in investor portfolio allocation has surpassed that of gold when adjusted for volatility, according to a statement from JPMorgan managing director Nikolaos Panigirtzoglou. He noted that Bitcoin’s allocation in investor portfolios is now 3.7 times greater than gold. This is largely due to the significant inflows of over $10 billion into spot Bitcoin exchange-traded funds (ETFs) since their approval in January. Panigirtzoglou believes that the potential market size for Bitcoin ETFs could reach $62 billion, using gold as a benchmark. In addition, a report from JPM Securities predicts that the spot Bitcoin ETFs market could grow to as large as $220 billion within the next two to three years. The positive impact of Bitcoin ETFs on the crypto market is evident, with the cryptocurrency’s market cap increasing by over 45% in February. Net sales for spot Bitcoin ETFs also saw a significant rise, reaching $6.1 billion in February compared to $1.5 billion in January. The largest daily inflows to spot Bitcoin ETFs peaked at over $1 billion on March 12, and analysts believe this number could continue to rise once outflows from the Grayscale Bitcoin Trust ETF come to a halt. As the Bitcoin halving approaches in just over a month, the daily supply of BTC will be reduced by half. This could further fuel demand and potentially lead to a supply crisis within the next six months, according to Ki Young Ju, the CEO of crypto analytic firm CryptoQuant. After a prolonged crypto winter, the approval of spot Bitcoin ETFs has acted as a catalyst for Bitcoin’s price surge, surpassing the previous all-time high of above $69,000 from the last bull cycle. It has also paved the way for institutional adoption, led by the world’s largest asset manager, BlackRock.