In the latest report of banking giant JP Morgan, institutional investors such as family offices preferred Bitcoin ETFs to gold ETFs. Corporate companies such as family offices that previously invested in gold ETFs may now be seeing Bitcoin as an alternative to this precious metal, analysts say.
Grayscale Bitcoin Trust has surpassed gold ETFs lately. According to JP Morgan, one of the largest banks in the USA, the reason for this is the demand for the largest cryptocurrency by institutional investors led by family offices, which are organizations that manage the funds of wealthy families.
According to CoinDesk’s report, JP Morgan analysts’ report dated November 6 made the following statements regarding the issue:
“This contract may actually support the idea that corporate companies like family offices that previously invested in gold ETFs now see Bitcoin as an alternative to this precious metal.”
According to analysts; The reason for the rise in Grayscale Bitcoin Trust is that not only investors in the age range specified as millennia, but also corporate companies such as family offices and fund managers prefer BTC.
Analysts also said in the report that if Bitcoin maintains its “alternative asset” status against gold, the demand for the largest cryptocurrency will increase further:
“As we have stated in our previous report dated October 23, if Bitcoin continues its ‘alternative asset’ struggle against gold, BTC’s long-term rise will continue. Bitcoin also; In order for gold to be equal to investments made with ETF, ingots or minerals, the current market value must increase approximately 10 times ”
On the other hand, analysts also warned that the sharp rise in Bitcoin this week may have brought the largest cryptocurrency to over-purchase levels and a decline could occur.