Bitcoin ($BTC) and gold are currently experiencing contrasting trends. In light of this, JPMorgan has published new insights regarding the relationship between $BTC and gold, highlighting a notable divergence.
The prominent US financial institution JPMorgan has indicated that since the onset of the US-Iran conflict, there have been opposing capital flows into Bitcoin and gold ETFs.
As reported by The Block, analysts from JPMorgan have observed a marked difference in the flow of investments into Bitcoin and gold ETFs since hostilities began in Iran.
In their recent analysis led by Nikolaos Panigirtzoglou, JPMorgan revealed that SPDR Gold Shares (GLD), which is recognized as the largest gold ETF, has seen outflows amounting to around 2.7% of its total assets since the war commenced. Conversely, BlackRock iShares Bitcoin Trust (IBIT), noted as the largest spot Bitcoin ETF, experienced inflows approximating 1.5% of its assets during this same timeframe.
This pronounced divergence is attributed to investors reallocating their portfolios between these two asset classes.
“We are witnessing a rebalancing among investors between gold and Bitcoin.”
The analysts further remarked that there are indications suggesting a gradual reduction in Bitcoin’s volatility as institutional investments rise and market liquidity enhances.
*This content does not constitute investment advice.