JPMorgan says BTC could outpace gold if ETF hedging eases

Bitcoin could see relatively stronger investor support than gold if investors scale back hedge positions tied to Bitcoin ETFs, The Block reported, citing JPMorgan analysts including Nikolaos Panigirtzoglou. The analysts said inflows moved into Bitcoin and gold ETFs after the Fed’s late-July meeting. Gold ETFs have fully recovered the outflows seen earlier this year, while Bitcoin ETFs have regained only about half, according to the report. Institutional positions in gold and Bitcoin futures remain elevated, but the gap between the two assets is more visible in ETF short positions. Despite recent inflows and a rise in futures positioning, Bitcoin still shows stronger investor caution and more conservative positioning than gold, which the analysts said may reflect greater hedging demand for Bitcoin. If those hedge positions are reduced, Bitcoin could receive relatively greater support than gold, they added.