{"id":31443,"date":"2020-11-09T10:46:25","date_gmt":"2020-11-09T08:46:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=31443"},"modified":"2025-08-28T03:42:35","modified_gmt":"2025-08-28T00:42:35","slug":"jpmorgan-institutions-increasingly-view-bitcoin-as-an-alternative-to-gold","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jpmorgan-institutions-increasingly-view-bitcoin-as-an-alternative-to-gold\/","title":{"rendered":"JPMorgan: Institutions increasingly view Bitcoin as an alternative to gold"},"content":{"rendered":"<p>The Grayscale Bitcoin Trust is outpacing gold-backed exchange-traded funds (ETFs) in capital inflows, driven by rising demand from institutional investors. This follows from a report by JPMorgan analysts.<!--more--><\/p>\n<blockquote>\n<p>&#8220;Earlier we <a href=\"https:\/\/u1f987.com\/en\/news\/jpmorgan-bitcoin-has-potential-for-long-term-growth\">noted<\/a> the significant potential of Bitcoin for long-term growth if it competes more intensively with gold as an &#8216;alternative&#8217; currency. The market capitalization of the first cryptocurrency would have to grow tenfold to match private-sector investments in gold through ETFs or bars and coins,&#8221; the JPMorgan experts emphasised.<\/p>\n<\/blockquote>\n<div id='attachment_115741' style='width: 421px' class='wp-caption aligncenter'><img loading='lazy' decoding='async' aria-describedby='caption-attachment-115741' class='wp-image-115741 size-full' src='https:\/\/u1f987.com\/wp-content\/uploads\/1-345.png' alt='JPMorgan: Institutions increasingly view Bitcoin as an alternative to gold' width='411' height='365' srcset='https:\/\/u1f987.com\/wp-content\/uploads\/1-345.png 411w, https:\/\/u1f987.com\/wp-content\/uploads\/1-345-300x266.png 300w' sizes='auto, (max-width: 411px) 100vw, 411px' \/><\/p>\n<p id='caption-attachment-115741' class='wp-caption-text'>Dynamics of GBTC growth and assets in &#8220;gold&#8221; ETFs. Source: JPMorgan.<\/p>\n<\/div>\n<p>Analyst Willy Woo agrees with the experts&#8217; assessment of Bitcoin&#8217;s positive momentum.<\/p>\n<blockquote class='twitter-tweet'>\n<p dir='ltr' lang='en'>Who has been buying this rally? It\u2019s smart money\u2026 High Net Worth Individuals. You can see the average transaction value between investors taking a big jump upwards. OTC desks are seeing this too.<\/p>\n<p>Bitcoin is still in it\u2019s stealth phase of its bull run. <a href='https:\/\/t.co\/3q41pmNVP9'>pic.twitter.com\/3q41pmNVP9<\/a><\/p>\n<p>\u2014 Willy Woo (@woonomic) <a href='https:\/\/twitter.com\/woonomic\/status\/1325673978321539072?ref_src=twsrc%5Etfw'>November 9, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src='https:\/\/platform.twitter.com\/widgets.js' charset='utf-8'><\/script><\/p>\n<blockquote>\n<p>Who&#8217;s behind this rally? It\u2019s smart money\u2026 High-net-worth individuals. The average transaction value between investors has jumped significantly. OTC desks are also aware of this trend. Bitcoin is still in the stealth phase of its bull run,&#8221; he explains.<\/p>\n<\/blockquote>\n<p>Woo suggests looking at another chart that gives a bullish signal. It shows a jump in the orange line, which indicates the speed of new investor inflows. The last time such momentum was seen was in late 2017.<\/p>\n<blockquote class='twitter-tweet' data-conversation='none'>\n<p dir='ltr' lang='en'>Best of all we are not just seeing smart money flow in, it\u2019s NEW smart money.<\/p>\n<p>Orange line is the rate of new investors coming in per hour previously unseen before on the blockchain.<\/p>\n<p>It\u2019s seriously bullish.<\/p>\n<p>Another killer chart by <a href='https:\/\/twitter.com\/glassnode?ref_src=twsrc%5Etfw'>@glassnode<\/a>. <a href='https:\/\/t.co\/ZXk95ksx3b'>pic.twitter.com\/ZXk95ksx3b<\/a><\/p>\n<p>\u2014 Willy Woo (@woonomic) <a href='https:\/\/twitter.com\/woonomic\/status\/1325677310406615042?ref_src=twsrc%5Etfw'>November 9, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src='https:\/\/platform.twitter.com\/widgets.js' charset='utf-8'><\/script><\/p>\n<p>Analysts at JPMorgan do not rule out profit-taking after the rally in recent weeks.<\/p>\n<blockquote>\n<p>According to our methodology, trend-following speculators intensified the latest rally and pushed Bitcoin into overbought territory. This could lead to a weakening of flows in the near term. To move into the extreme-value zone that would amplify this signal, the price of the first cryptocurrency would need to rise another 5-6%,&#8221; they add.<\/p>\n<\/blockquote>\n<p style='margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; display: block;'><a style='text-decoration: underline;' title='View JPM-Flows-Liquidity-2020-11-06 on Scribd' href='https:\/\/www.scribd.com\/document\/483504109\/JPM-Flows-Liquidity-2020-11-06#from_embed'>JPM-Flows-Liquidity-2020-11-06<\/a> by <a style='text-decoration: underline;' title=\"View ForkLog's profile on Scribd\" href='https:\/\/www.scribd.com\/user\/456422024\/ForkLog#from_embed'>ForkLog<\/a> on Scribd<\/p>\n<p><iframe loading='lazy' id='doc_54065' class='scribd_iframe_embed' title='JPM-Flows-Liquidity-2020-11-06' src='https:\/\/www.scribd.com\/embeds\/483504109\/content?start_page=1&#038;view_mode=scroll&#038;access_key=key-4Od1mmmo2QVlxltaYVwT' width='100%' height='600' frameborder='0' scrolling='no' data-auto-height='false' data-aspect-ratio='0.7729220222793488'><\/iframe><\/p>\n<p>Earlier JPMorgan strategist Nikolaos Panigirtzoglou <a href=\"https:\/\/u1f987.com\/en\/news\/jpmorgan-millennials-pick-bitcoin\">noted<\/a> that investors are seeking alternative assets and are allocating substantial cash to gold and Bitcoin. This is driven by uncertainty due to the coronavirus pandemic.<\/p>\n<p>In March, the bank&#8217;s analysts acknowledged that Bitcoin&#8217;s March crash was its first serious stress test, which it handled quite successfully.<\/p>\n<p>According to the latest Cointelegraph poll, 61% of institutional investors have already <a href=\"https:\/\/u1f987.com\/en\/news\/survey-61-of-institutional-investors-have-already-invested-in-cryptocurrencies-or-plan-to-do-so\">invested<\/a> in cryptocurrencies or plan to do so.<\/p>\n<p>Follow ForkLog on Facebook!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Grayscale Bitcoin Trust is outpacing gold-backed ETFs in capital inflows thanks to rising demand from institutional investors, according to JPMorgan analysts.<\/p>\n","protected":false},"author":1,"featured_media":31444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[536,943,1156,229],"class_list":["post-31443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-gold","tag-grayscale-investments","tag-institutional-investors-and-whales","tag-jpmorgan"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/31443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=31443"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/31443\/revisions"}],"predecessor-version":[{"id":31445,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/31443\/revisions\/31445"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/31444"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=31443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=31443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=31443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}