In a recent report by JPMorgan, it has been revealed that Bitcoin’s allocation in investor portfolios has exceeded that of gold, particularly when adjusted for volatility. Nikolaos Panigirtzoglou, a managing director at JPMorgan, highlighted this shift, noting that Bitcoin’s allocation is now 3.7 times higher than gold’s. This trend is attributed to the significant inflows into spot Bitcoin ETFs, which have attracted over $10 billion in investments since their approval in January. JPMorgan Securities anticipates that the spot Bitcoin ETF market could grow to $220 billion in the next two to three years, potentially impacting Bitcoin’s price.
The surge in investments has already had a positive impact, with Bitcoin’s market cap increasing by 45% in February alone. Notably, net sales for spot Bitcoin ETFs reached $6.1 billion in February, a substantial increase from January’s $1.5 billion. March 12 witnessed record-breaking inflows, with over $1 billion invested in a single day. Analysts foresee further growth, especially with upcoming events like the Bitcoin halving, expected to reduce the daily supply of Bitcoin by half and potentially leading to a supply shortage within six months.
Bitcoin’s resurgence follows a prolonged crypto winter, with the approval of spot Bitcoin ETFs serving as a pivotal moment for its price trajectory. The cryptocurrency surpassed its previous all-time high, attracting institutional adoption led by BlackRock.