Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»ADOPTION NEWS»JP Morgan said it was unrealistic to expect Bitcoin to match gold within its portfolio in nominal terms.
ADOPTION NEWS

JP Morgan said it was unrealistic to expect Bitcoin to match gold within its portfolio in nominal terms.

By Crypto FlexsMarch 8, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
JP Morgan said it was unrealistic to expect Bitcoin to match gold within its portfolio in nominal terms.
Share
Facebook Twitter LinkedIn Pinterest Email

Despite massive inflows into a spot Bitcoin exchange-traded fund recently launched in the US, it is unrealistic to expect Bitcoin to match the notional amount of gold in investors’ portfolios, according to a recent analyst report.

A report published on Thursday by a team of JPMorgan analysts led by Nikolaos Panigirtzoglou noted that risk is a critical factor often ignored in arguments that Bitcoin should match gold in investor portfolios. This argument assumes that Bitcoin’s market capitalization should rise to $3.3 trillion (the value of gold held for investment purposes), thus implying that the price of Bitcoin would more than double.

Most investors consider risk and volatility when allocating across asset classes, analysts said. Given that Bitcoin’s volatility is approximately 3.7 times higher than that of gold, they concluded that it is unrealistic to expect Bitcoin to match gold by a nominal amount within an investor’s portfolio.

Analysts have argued that assuming Bitcoin matches gold in terms of risk capital (funds earmarked for speculative activities), the implied allocation would be reduced to $0.9 trillion, which is $3.3 trillion divided by 3.7.

“This means that the price of Bitcoin is well below current levels at $45,000. That is, at $66,000 today, the implied allocation to Bitcoin within an investor’s portfolio has already surpassed the allocation to gold on a volume-adjusted basis,” the analysts said. said.

Spot Bitcoin ​​ETFs could see inflows worth around $62 billion in the next two to three years.

Of the total gold holdings of $3.3 trillion for investment purposes, only 7%, or $230 billion, is held in fund form, with the rest in the form of bars and coins, analysts said.

Analysts noted that using gold as a benchmark and applying the same volatility ratio of 3.7, the potential Bitcoin ETF size would be approximately $62 billion (i.e. $230 billion divided by 3.7). They added that this represents a “realistic target” for the potential size of a spot Bitcoin ETF over time, perhaps within two to three years. However, most of the implied net inflows could come from ongoing cyclical movements from traditional products to ETFs, they noted.

The spot Bitcoin ETF outside the Grayscale Bitcoin Trust has already seen cumulative inflows of $19 billion since launch. That’s nearly half of the $36 billion in circular movements JPMorgan previously expected for all of 2024.

After accounting for a total of $10 billion in outflows from GBTC to date, net inflows into all spot Bitcoin ETFs amount to $9 billion, which analysts still consider a “significant” number.

However, they expressed skepticism that the entire $9 billion represents new funds entering the cryptocurrency space, as retail investors are probably switching from existing products and venues to new spot Bitcoin ETFs.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Gala Games improves leader board rewards and introduces preference systems.

June 20, 2025

Ether Leeum Whale starts a $ 11 million leverage betting in the 30% increase in ETH prices.

June 12, 2025

AI starts a cost -effective batch API for LLM request.

June 12, 2025
Add A Comment

Comments are closed.

Recent Posts

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Earns $9,800 Per Day With BTC Breaks Through $107,000, GoldenMining Global Market.

June 27, 2025

Why Bakkt Holdings can buy Bitcoin with a $ 1 billion increase

June 27, 2025

NVIDIA RTX strengthens FITY’s AI -centered innovation in Cooler Design.

June 27, 2025

Join Earn Mining To Mine Easily And Earn $7752 A Day

June 26, 2025

Bitcoin prices return to green -building exercise for more profits

June 26, 2025

Weed® Announces Partnership With Khalifa Kush; Launches Global Commercialization

June 26, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025
Most Popular

Interest in passing stablecoin legislation grows, but regulatory uncertainty remains

April 26, 2024

Address Poison Beware: Scammers Steal $2 Million From Secure Wallet Users

December 4, 2023

Ethereum Project: How to learn to dream with an open mind

June 2, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.