In a recent analysis by JPMorgan, Bitcoin has outperformed gold in terms of investors' portfolio allocation while taking volatility into account.
Nikolaos Panigirtzoglou, managing director at JPMorgan, explained that the allocation to Bitcoin (BTC) is 3.7 times higher than that of gold, attributing this shift to the significant inflows into spot Bitcoin ETFs. Since these ETFs were approved in January, over $10 billion has been invested, with the potential market size expected to reach $62 billion.
JPM Securities predicts that the spot market for Bitcoin ETFs could grow to $220 billion within the next two to three years, which could potentially impact the price of Bitcoin.
This influx has already proven beneficial, as evidenced by the 45% increase in Bitcoin's market cap in February alone. Spot Bitcoin ETF net sales reached $6.1 billion in February, a significant increase from January's $1.5 billion.
Record inflows were observed on March 12, with over $1 billion invested in a single day. According to Ki Young Ju, CEO of CryptoQuant, analysts expect these numbers to continue to rise, especially in light of upcoming events such as the Bitcoin halving, which will reduce the daily supply of Bitcoin by half, potentially within six months will lead to a supply crisis.
The bears cannot win this game until spot inflows from #Bitcoin ETFs stop.
Last week, spot ETFs recorded net inflows of +30,000 BTC. Well-known companies such as exchanges and miners hold about 3 million BTC, including 1.5 million BTC from US companies.
At this rate, we will see a sell-side liquidity crisis within six months. pic.twitter.com/qwAbZJwSOl
— Ki Young Ju (@ki_young_ju) March 12, 2024
Bitcoin's resurgence comes after a nearly three-year crypto winter, with locally approved Bitcoin ETFs marking a pivotal moment for the crypto's price. The cryptocurrency surpassed its previous all-time high of over $69,000, boosting institutional adoption led by BlackRock.
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