A financial report by JPMorgan revealed that institutional investors now prefer Bitcoin to Gold.
According to the report, investment flow into Grayscale Bitcoin Trust saw more increases than all Gold ETFs in October. JPMorgan also noted that accredited investors had chosen Grayscale’s GBTC over gold ETFs since 2019.
According to the report:
“This contrast lends support to the idea that some investors that previously invested in Gold ETFs such as family offices, may be looking at Bitcoin as an alternative to gold.”
According to a tweet by the managing director of Grayscale, Michael Sonnenshein, the year-to-date investment inflow for Grayscale is nearly $3 billion. With an increased influx of investment, the Grayscale executive added that its assets under management now exceed $9.1 billion.
In addition, the recent surge in the price of Bitcoin has strengthened the digital asset over gold. Since April, BTC has seen constant increases amid the unprecedented coronavirus pandemic. Since April, BTC has surged significantly and is currently trading at $15,055.52.
In the last week of October, Grayscale Bitcoin Trust had its largest weekly inflow ever. The company recorded an inflow of 15,907 BTC worth $215 million. Cointelegraph reported that the firm was on track to account for 2.75% of the entire circulating supply of BTC in weeks.
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