JPMorgan reports shift in investor portfolio allocation as Bitcoin surpasses gold

Bitcoin has surpassed gold in terms of investor portfolio allocation when considering volatility, according to an analyst at JP Morgan. Nikolaos Panigirtzoglou, the managing director at JPMorgan, stated that when adjusting for volatility, the allocation of Bitcoin in investor portfolios is 3.7 times higher than that of gold. The analyst also noted the significant inflows of over $10 billion into spot Bitcoin exchange-traded funds (ETFs) since their approval in January, and projected that the potential market size for Bitcoin ETFs could reach $62 billion, using gold as a benchmark. Another report from JPM Securities predicts that the spot Bitcoin ETFs market could grow to as much as $220 billion within the next two to three years. In February, Bitcoin ETFs saw a 45% increase in market cap, with net sales reaching $6.1 billion compared to $1.5 billion in January. The largest daily inflows to Bitcoin ETFs peaked at over $1 billion on March 12, and experts believe this number could rise further once outflows from the Grayscale Bitcoin Trust ETF cease. Additionally, with the Bitcoin halving approaching in just over a month, the daily supply of BTC will be cut in half, potentially increasing demand and leading to a supply crisis within the next six months. CEO of crypto analytic firm CryptoQuant, Ki Young Ju, made this prediction. After a lengthy crypto winter lasting nearly three years, the approval of spot Bitcoin ETFs has been a catalyst for BTC’s significant price surge, surpassing the previous all-time high from the last bull cycle of over $69,000. This approval has also paved the way for institutional adoption, led by BlackRock, the world’s largest asset manager.