{"id":129661,"date":"2020-12-09T20:06:37","date_gmt":"2020-12-09T17:06:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-will-eat-golds-market-share-according-to-jpmorgan\/"},"modified":"2020-12-09T20:06:37","modified_gmt":"2020-12-09T17:06:37","slug":"bitcoin-will-eat-golds-market-share-according-to-jpmorgan","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-will-eat-golds-market-share-according-to-jpmorgan\/","title":{"rendered":"# Bitcoin will eat gold’s market share, according to JPMorgan"},"content":{"rendered":"

“# Bitcoin will eat gold’s market share, according to JPMorgan <\/strong>”
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Growing mainstream acceptance of Bitcoin (BTC) as a reserve asset is having a direct impact on gold, setting the stage for a major shift in institutional allocation between the two assets, according to analysts at JPMorgan Chase.<\/p>\n

Quantitative strategists, including Nikolaos Panigirtzoglou, believe that Bitcoin\u2019s digital gold narrative will draw investors away from precious metals, possibly for years to come, leading to a large divergence in price between the two assets.<\/p>\n

The bank said Bitcoin only accounts for 0.18% of assets held at family offices, compared with 3.3% for gold exchange-traded funds. Using this data as a starting point, only a small reallocation from gold to BTC could lead to \u201cstructural headwinds\u201d for bullion\u2019s price. <\/p>\n

In a note to clients that was obtained by Bloomberg, the strategists said<\/a>:<\/p>\n

\u201cThe adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.\u201d<\/p><\/blockquote>\n

Looking beyond JPMorgan\u2019s analysis, there is clear evidence that institutional uptake of Bitcoin is rising. Grayscale, a digital-asset manager, has recorded record inflows into its Bitcoin and Ethereum (ETH) trusts. Grayscale, Paypal and Cash App<\/a> are buying up more BTC than is being mined each day. <\/p>\n

Data aggregator CoinShares has also reported on the recent surge in crypto capital inflows. Over just four weeks, Bitcoin products sucked in $1.4 billion. Gold, meanwhile, recorded record outflows of $9.2 billion.<\/p>\n

Investors wishing to go along with the trend can purchase one unit of Grayscale’s Bitcoin Trust and sell three units of the SPDR Gold Shares trust, the bank said.\u00a0<\/p>\n

Despite Bitcoin\u2019s long-term value proposition, the digital asset is likely overextended after the latest rally. The strategists cite the possibility of strong selling pressure in the short term. <\/p>\n

Bitcoin\u2019s price briefly fell below $18,000 on Wednesday, having declined by more than 7% at the lowest point. <\/p>\n