A recent report from JPMorgan states that both institutional and retail investors have been buying both gold and bitcoin (BTC) this year, instead of switching between the two assets as some analysts have assumed.
The report highlights that outflows from gold exchange-traded funds (ETFs) and strong inflows into bitcoin ETFs have increased the ability for investors to shift from precious metals to digital currency. JPMorgan disagrees with the assumption that investors are simply switching between these two assets.
The authors write: “In addition to retail investors, speculative institutional investors such as hedge funds including momentum traders like CTAs also appear to have propagandized the recovery by buying both gold futures contracts and bitcoin since February, perhaps more forcefully than retail investors.”
The bank’s analysis shows “a strong position since February with $7 billion bitcoin futures contracts and $30 billion gold futures contracts.”
MicroStrategy (MSTR) plays a significant role in amplifying interest in the crypto market. The report notes that the company has bought over $1 billion worth of bitcoin this year, adding to the over $1 billion raised in the last quarter of 2023.
