In terms of investor portfolio allocation, Bitcoin has surpassed gold when considering volatility, according to JP Morgan analyst Nikolaos Panigirtzoglou. Adjusted for volatility, Bitcoin allocation in investor portfolios is 3.7 times greater than that of gold. Panigirtzoglou noted the significant inflows of over $10 billion into spot Bitcoin exchange-traded funds (ETFs) since their approval in January. He also projected that the potential market size for Bitcoin ETFs could reach $62 billion, using gold as a benchmark. Additionally, a report from JPM Securities predicts that the spot Bitcoin ETFs market could grow to as much as $220 billion in the next two to three years. The introduction of Bitcoin ETFs has had a positive impact on the crypto market, with the largest cryptocurrency experiencing a 45% increase in market cap in February. In that month, net sales for spot Bitcoin ETFs reached $6.1 billion, compared to $1.5 billion in January. The spot Bitcoin ETFs saw their largest daily inflows peak at over $1 billion on March 12, and analysts believe this number could continue to rise once outflows from the Grayscale Bitcoin Trust ETF cease. With the Bitcoin halving scheduled to occur in just over a month, the daily supply of BTC will be cut in half, potentially fueling further demand and leading to a supply crisis within the next six months, according to Ki Young Ju, the CEO of crypto analytic firm CryptoQuant. After a prolonged crypto winter lasting nearly three years, the approval of spot Bitcoin ETFs has become a catalyst for BTC’s significant price increase, surpassing the all-time high of the previous bull cycle, which was above $69,000. This development has also paved the way for institutional adoption, led by BlackRock, the world’s largest asset manager.
JPMorgan: Bitcoin surpasses gold as investors allocate more to their portfolios