New York-based financial giant JP Morgan reveals that large investors are putting their capital in Bitcoin (BTC) at the expense of gold.
[adinserter block="1"]Grayscale managing director Michael Sonnenshein shared a chart from a recent JP Morgan report showing that since October 2019, Bitcoin has left the precious metal in the dust in terms of demand.
“What makes the October flow trajectory for the Grayscale Bitcoin Trust even more impressive is its contrast with the equivalent flow trajectory for gold ETFs, which overall saw modest outflows since mid-October. This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at Bitcoin as an alternative to gold.”
The most recent report reiterates the US banking giant’s bullish stance on the number one cryptocurrency. In October, JP Morgan said that a shift in demographics will serve as a tailwind in Bitcoin’s ascent.
“The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that millennials would become over time a more important component of investors’ universe.”
[adinserter block="1"]JP Morgan also highlights Bitcoin’s features that could boost its value in the future.
“Cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as [a] means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.”
