Thomas Daniels
In a recent study conducted by JPMorgan, it was found that Bitcoin now exceeds gold in its share of investor portfolios, once adjustments for volatility are made. Nikolaos Panigirtzoglou, a top executive at JPMorgan, highlighted that the allocation for Bitcoin (BTC) is now 3.7 times higher than that for gold. This shift is largely attributed to the significant capital inflow into spot Bitcoin Exchange-Traded Funds (ETFs). Following the green light for these ETFs in January, an impressive sum of over $10 billion has been poured into the market, with projections suggesting a potential growth to $62 billion.
Forecasts by JPM Securities suggest that the market for spot Bitcoin ETFs could swell to $220 billion in the next 2-3 years, a development that could have a profound effect on Bitcoin’s valuation.
The positive impact of this influx is already manifest, with Bitcoin’s market capitalization witnessing a 45% surge in February alone. February saw net sales for spot Bitcoin ETFs climb to $6.1 billion, marking a significant increase from $1.5 billion in January.
A record-setting day was noted on March 12, with investments exceeding $1 billion in just 24 hours. Analysts remain optimistic about further growth, especially in light of impending events like the Bitcoin halving. This event is set to slash the daily Bitcoin supply by half, potentially triggering a supply crunch within the next six months, as stated by Ki Young Ju, CEO of CryptoQuant.
Bitcoin’s revival, breaking free from nearly three years of a cryptocurrency downturn, has been significantly bolstered by the approval of spot Bitcoin ETFs. This pivotal moment has propelled the cryptocurrency to surpass its previous peak of over $69,000 and has been instrumental in driving institutional adoption, with BlackRock leading the charge.
