JP Morgan: Funds are not flowing into Bitcoin spot ETF! Just buy physical gold bars instead

This site (120bTC.coM): According to the Financial Times, JPMorgan Chase and Bloomberg data show that as of the 14th, Bitcoin spot ETFs have attracted a net inflow of US$10.6 billion this year. , at the same time, gold ETFs were sold off heavily, with a net outflow of US$7.7 billion during the same period. This flow of funds led the outside world to believe that investors were abandoning gold and turning to investing in "digital gold."

However, JPMorgan Chase’s latest analysis report points out that this argument does not hold true. Gold ETFs have begun to experience capital outflows since April 2022. Since then, the sell-off has continued at a roughly balanced rate. The U.S. Bitcoin Spot ETF After listing, the sell-off of gold ETFs did not accelerate. During this period, gold ETFs had a net outflow of approximately US$46 billion.

Although gold ETFs have experienced large outflows, according to data from the World Gold Council, between September 2020 and December 2023, Individual investors poured $229 billion into gold bars and coins, far exceeding outflows from ETFs.

In addition, as global central banks tend to use gold as foreign exchange reserves, they purchased a total of US$155 billion in gold during this period.

Therefore, Nikolaos Panigirtzoglou, global market strategist at JPMorgan Chase, pointed out that the outflow of funds from gold ETFs does not mean that investors have lost interest in gold, but that investors are more inclined to allocate funds to physical gold, such as gold bars and gold. The shift likely reflects stronger investor demand for physical gold, which is seen as a relatively stable safe-haven asset that can provide protection against market volatility. Investors may be more inclined to hold physical gold to cope with increased uncertainty and economic risks

Bitcoin demand has not been strong

JPMorgan analysis also shows that demand for Bitcoin this year , not as strong as the Bitcoin spot ETF shows. Although the Bitcoin spot ETF has a net inflow of US$10.6 billion this year, according to Messari data, since the beginning of this year, investors have directly sold Bitcoin worth US$6 billion on exchanges. currency.

This means that most of the inflows into Bitcoin spot ETFs actually originate from individual investors’ digital wallets that originally held Bitcoin through exchanges or retail brokers, because ETFs provide greater convenience and supervision. Guarantee, therefore, that the growth of spot ETFs does not necessarily mean that new funds are flowing into the cryptocurrency market.

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