JP Morgan analyst Nikolaos Panigirtzoglou has revealed that Bitcoin, when adjusted for volatility, now exceeds gold in investor portfolio allocation by 3.7 times. This revelation comes amidst a significant influx of over $10 billion into Bitcoin exchange-traded funds (ETFs) since January, with the potential Bitcoin ETF market size projected to reach $62 billion using gold as a benchmark. Additionally, JPM Securities predicts that spot Bitcoin ETFs could grow to as large as $220 billion within the next two to three years, potentially impacting Bitcoin’s price due to the multiplier effect on capital.

Bitcoin ETFs have proven beneficial for the crypto market, with the largest cryptocurrency witnessing over a 45% increase in market cap in February alone. The approval of spot Bitcoin ETFs has resulted in net sales climbing to $6.1 billion in February, signaling growing investor interest. Analysts anticipate further increases in ETF inflows, particularly after the cessation of outflows from Grayscale’s GBTC ETF. With Bitcoin halving imminent, expected to halve the daily BTC supply, predictions suggest a potential supply crisis within the next six months, further driving demand for the cryptocurrency.

Report