JPMorgan: Bitcoin could surpass gold if ETF hedging decreases

Bitcoin may attract stronger investor support than gold if hedge positions related to Bitcoin ETFs are reduced, according to JPMorgan analysts. Following the Fed's late-July meeting, inflows into Bitcoin and gold ETFs increased. Gold ETFs have fully recovered earlier outflows, while Bitcoin ETFs have regained about half. Institutional positions in gold and Bitcoin futures remain high, but the disparity is evident in ETF short positions. Despite recent inflows and increased futures positioning, Bitcoin displays more investor caution and conservative positioning compared to gold, indicating higher hedging demand for Bitcoin. A reduction in these hedge positions could lead to greater support for Bitcoin relative to gold.

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