JPMorgan strategists noted that the trend that has been going on since November can only continue in the long run with more institutional investors positioning in cryptocurrencies.
According to JPMorgan Chase & Co., the rise of cryptocurrencies in the traditional financial system is at the expense of gold.
JPMorgan quant strategists, including Nikolaos Panigirtzoglou, point out that since November money has entered and gone from Bitcoin funds, and that this trend can only continue in the long run with more institutional investors positioning in cryptocurrencies.
JPMorgan is among the few banks expecting a major change in gold and crypto markets as digital currencies are becoming increasingly popular as an asset class. Because even if investors shift only a limited part of the capital from gold to crypto assets in the coming years, this trend may become a problem for those who expect an increase in precious metals.
In the note written by the bank’s strategists, “Bitcoin’s adoption by institutional investors has just begun. The adoption level of gold by institutional investors is at a very advanced level.” It was said.
There has been $ 2 billion in inflows since October, according to JPMorgan, Grayscale Bitcoin Trust, a listed security and popular with institutions. In the same period, an outflow of $ 7 billion from gold-backed exchange traded funds (ETF) was realized.