JPMorgan Sees Bitcoin Gaining on Gold if ETF Shorts Unwind

JPMorgan analysts led by Nikolaos Panigirtzoglou argue that Bitcoin could attract stronger buying interest than gold once large hedging positions in its ETFs are reduced.

Inflows into both Bitcoin and gold ETFs picked up after the Fed’s late-July meeting, but the trend faded last week as real bond yields rose and the Senate stalled on the Clarity Act.

Gold ETFs have already recouped all their early-year outflows, while Bitcoin products have clawed back only about half. Short interest in BlackRock’s iShares Bitcoin Trust (IBIT) sits near this year’s peak, whereas shorts in SPDR Gold Shares (GLD) remain below their long-term average.

A decline in hedging demand that triggers covering of those Bitcoin shorts could deliver a bigger lift to the cryptocurrency than to gold, the bank concludes.

Based on information from https://cryptonews.net