JPMorgan analysts argue Bitcoin may outperform gold as a hedge if ETF hedging demand declines, citing high short interest in BlackRock's Bitcoin Trust.
Macro & Markets ·
JPMorgan analysts argue that Bitcoin may receive greater price support than gold if hedging demand tied to exchange-traded funds declines, citing elevated short interest in BlackRock's iShares Bitcoin Trust. The analysis points to Bitcoin's put-to-call open interest ratio, which exceeds that of gold, suggesting more intensive hedging activity in Bitcoin markets. Gold's short interest, by contrast, remains below its historical average.
Recent ETF flows have shown volatility, with a $731 million inflow recorded on September 3, alongside broader fluctuations throughout September. The research reflects a view that as hedging pressure eases, Bitcoin's structural support could strengthen relative to gold's.
The framing remains conditional on hedging demand actually declining. Whether investor sentiment toward Bitcoin as an alternative hedge to gold will shift, and how sustained such a shift would prove, remain unresolved questions in the analyst projection.