According to a recent report from JPMorgan, the allocation of bitcoin in investor portfolios has now surpassed that of gold in terms of volume. This trend has been driven by a surge in demand for the cryptocurrency, pushing its price to a new all-time high this week.
The launch of new bitcoin spot ETFs is expected to further increase its popularity among investors, with potential inflows of up to $62 billion in the next few years. This is a significant amount, considering that the total investment in gold currently stands at around $3.3 trillion.
At first glance, gold should hold a higher percentage in portfolios compared to bitcoin, given its higher market cap of $1.3 trillion. However, when adjusting for volume, JPMorgan found that the two assets have an equal allocation at a price of $45,000.
But with bitcoin’s volumes being 3.7 times higher than gold, its current price of $66,000 already implies a higher allocation in investor portfolios compared to gold. This is a notable achievement for the cryptocurrency, especially since it has been often compared to gold as a digital version of the commodity.
While both assets have benefited from speculation about potential interest rate cuts, bitcoin has also seen a boost from the upcoming halving event and the emergence of bitcoin spot ETFs. These ETFs have already seen inflows of $9 billion, and JPMorgan predicts that they could eventually hold up to $62 billion, potentially within the next two to three years.
However, it is important to note that some of this inflow may come from a shift in investments from existing instruments and venues to ETFs. Nevertheless, it is still a significant indication of the growing popularity of bitcoin among investors.
In conclusion, JPMorgan believes that bitcoin’s allocation in investor portfolios could continue to increase, possibly surpassing that of gold in vol adjusted terms. With the recent rise in price and the launch of new ETFs, bitcoin is expected to continue its upward trajectory as a popular investment option in the years to come.