Analysts from the United States financial giant reveal that the interest of institutional investors in Bitcoin, during the month of October, was impressive, representing the cryptocurrency as a better alternative to gold.
In a new report, analysts from one of the oldest and most important financial institutions in the world, JPMorgan, they point out that the cryptocurrency The market leader by capitalization is arousing great interest among institutional investors, who see this cryptocurrency as a better investment alternative than gold. According to the study by this entity's analysts, in the month of October the institutional interest in Bitcoin grew exponentially.
The performance in Bitcoin numbers against gold caught the attention of many investors, who decided to invest in this cryptocurrency. And although in recent months the price of Bitcoin has maintained a stable behavior, the recent upward trend experienced by the cryptocurrency is attracting a large number of institutional investors to the ecosystem. In its report, JPMorgan reveals that there is a greater influx of investors in Grayscale, one of the best-known Bitcoin fund managers in the world, so this company's Bitcoin (BTC) holdings have skyrocketed exponentially.
It may interest you: Bitcoin continues the upward trend, according to several analysts
Bitcoin as an alternative to Gold
Grayscale, the leading manager for investments in Bitcoin and other cryptocurrencies and digital assets, experienced large inflows related to Bitcoin (BTC), especially in the last month (October), while gold ETFs slowed down and decreased significantly . Cumulative Bitcoin inflows versus modest gold ETF outflows indicate that institutional investors are looking at Bitcoin as an alternative to the precious metal, JPMorgan analysts indicate. For its part, Michael Sonnenshein, CEO of Grayscale, says that:
“This contrast supports the idea that some investors who previously invested in gold ETFs, such as family offices, may be considering bitcoin as an alternative to gold.”
In the report, JPMorgan highlights and acknowledges the current investor trend, citing data from the Grayscale Bitcoin Trust, to suggest that confidence in the cryptocurrency is on the rise, and not only on the part of institutional investors, but also on the part of retail investors, although it places special emphasis on the interest shown by the former. Likewise, the growing interest shown by institutional investors in the cryptocurrency may be related to the recent fall in gold, which fell more than 4% in the last few hours.
$7,6 billion in Bitcoin
The JPMorgan report points out that Grayscale Bitcoin Trust currently manages assets in Bitcoin in the order of $7,6 billion, while in the rest of its products based on other cryptocurrencies, the total funds in assets are much lower. . On its official Twitter account, Grayscale also posted an update in this regard, noting that in total the company manages funds worth $9,1 billion, of which the net assets managed through the Grayscale Bitcoin Trust represent more of 80%.
Likewise, in response to the data provided by the Bitcoin fund manager, the market analyst and director of Rockaway Blockchain Fund, Victor Fisher, notes that this company continues to acquire close to 900 BTC per day, since the third occurred halving of Bitcoin in the month of May. As a curious fact, Fischer highlights that in the month of October, and since the halving of the miners' reward, close to 1.000 BTC are mined per day, and that Grayscale acquires 900 BTC of these, almost all of the new BTC generated daily.
Long-term Bitcoin potential
Finally, the financial giant noted that in its previous report it had highlighted the posibilidad of Bitcoin maintaining the long-term bullish trend, as there may be no determining factors that would prevent Bitcoin's value from continuing to appreciate in the future. Likewise, the entity's analysts pointed out that the appreciation in the value of Bitcoin will also continue to increase as it is presented as a better alternative to gold, and as the generation known as Millennials increasingly adopt the cryptocurrency. . Although, on the other hand, analysts also warned that the recent increase in its value may bring Bitcoin close to overbought levels, so a massive sell-off may occur in the coming days.
At press time, Bitcoin is trading at $15.345,6 USD, up 0,3% over the past 24 hours, while the cryptocurrency's market cap is above $284 billion, according to data from the cryptocurrency exchange. CoinGecko.
Continue reading: JPMorgan launches its own stablecoin, another bet by traditional banking on blockchain and DLT
