JPMorgan Chase & Co .: Investors Choose Bitcoin Over Gold ETF

Institutional investors are willing to include bitcoin in their portfolios, considering it as a “safe haven asset” in the current economic crisis. The first cryptocurrency is considered by major market players as an alternative instrument to gold, writes the head of Grayscale Investments Michael Sonnenshine, referring to the report of the financial holding JPMorgan Chase & Co.

According to the graph, a rapid growth in investments in the first cryptocurrency was recorded, while in the ETF for gold, this indicator slowed down significantly.

Growth dynamics of GBTC and assets in gold ETFs. Source: JPMorgan.

“Bitcoin’s market capitalization needs to grow tenfold to match private sector investment in gold through ETFs or bullion and coins,” write analysts at JPMorgan Chase & Co.

It is worth noting that the growth in the number of Grayscale Investments solutions was facilitated not only by the interest from large market players, but also by the rapid upward dynamics of the BTC rate itself, which this year rose above 15 thousand dollars per coin.