Global financial services firm JP Morgan has stated positive views about crypto, claiming investors have hiked their crypto allocation to record levels, surpassing even gold.
A news report recently quoted Nikolaos Panigirtzoglou, Managing Director, JP Morgan. The official reportedly said investors were hiking their crypto allocation significantly. As a result, Bitcoin has even crossed gold in portfolio allocations adjusted to inflation, he said. He claimed the Bitcoin allocation by investors is currently 3.7 times higher than that of gold.
The numbers are along expected lines since crypto investments have increased exponentially recently. Most crypto investments could likely be due to the spot Bitcoin ETFs. Crypto investment products like the ETFs have seen record inflows in the same period. Panigirtzoglou described the total inflows as around $10 billion since January 2024.
At the same time, JP Morgan Securities also predicted ETF inflows based on its research. It described the ETF approvals as just the beginning of long-term high inflows. Meanwhile, in the report describing Panigirtzoglou’s analysis, the spot Bitcoin ETF market was to reach $62 in two to three years. Although outflows had also increased, they were relatively minor compared to the inflows.
It said, “If we are directionally correct on the level of net ETF inflows reaching $220B, applying our estimate of the current multiplier of new capital of ~25X, this alone could drive a $5.5T Bitcoin market cap increase, or $280K per Bitcoin.”
The crypto market has surged drastically in the last two months but recently experienced a correction. The market correction could also last only temporarily if crypto investment products attract higher investments. On the other hand, the Bitcoin-halving event could also drive a crypto rally in the next few months.
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