Investors’ allocation to Bitcoin is 3.7 times more than that to gold, according to Nikolaos.
The market for spot Bitcoin ETFs can reach $220 billion in the next 2-3 years.
After taking volatility into account, a JP Morgan analyst claims that Bitcoin is currently more heavily allocated to investor portfolios than gold. Investors’ allocation to Bitcoin (BTC) is 3.7 times more than that to gold, according to JPMorgan managing director Nikolaos Panigirtzoglou, who allegedly said this after accounting for volatility.
Using gold as a benchmark, the analyst predicted that the market capitalization for Bitcoin exchange-traded funds (ETFs) might reach $62 billion, pointing out the substantial inflows of over $10 billion into these funds since their introduction in January.
Further Surge Anticipated
According to JPMorgan, the market for spot Bitcoin exchange-traded funds (ETFs) can reach $220 billion in the next 2-3 years. Due in large part to the success of Bitcoin exchange-traded funds (ETFs), the market capitalization of the biggest cryptocurrency in the world increased by more than 45 percent in February. After just $1.5 billion in January, spot Bitcoin ETF net sales soared to $6.1 billion in February.
Spot Bitcoin ETF inflows hit a record high of over $1 billion on March 12, and experts predict the figure might go up if investors stop pulling out of the Grayscale Bitcoin Trust ETF.
The CEO of crypto analytics business CryptoQuant, Ki Young Ju, forecasts that a supply crisis will occur within the next six months due to the impending Bitcoin halving, which is just over a month away. This is because the daily supply of BTC will be slashed in half.
Spot Bitcoin ETF approvals ended a crypto winter that lasted almost three years and sparked BTC’s massive price action, which has now surpassed the all-time high of above $69,000 and opened the door to institutional adoption spearheaded by BlackRock.