Although the recently launched Bitcoin spot ETF in the United States has received significant inflows, it is unrealistic to expect Bitcoin to equal the notional amount of gold in investors’ portfolios, according to a recent report from JPMorgan analysts.
Analysts say most investors consider risk and volatility when allocating money to different asset classes. Given that Bitcoin is approximately 3.7 times more volatile than gold, it would be unrealistic to expect Bitcoin to have a similar nominal amount in a portfolio as gold. Of the $3.3 trillion in total gold used for investment purposes, only 7% ($230 billion) is held in funds, with the remainder held in bars and coins. Analysts also said that Bitcoin spot ETFs could see around $62 billion in inflows over the next 2-3 years. (TheBlock)