JPMorgan Chase: «Institutional investors buy bitcoin instead of ETF for gold»

09.11.2020
Michael Sonnenschein, Managing Director of Grayscale Investments, said that according to JPMorgan Chase’s report, bitcoin is dragging part of the ETF investment into gold.

According to Michael Sonnenshein, Managing Director of Grayscale Investments, data from JPMorgan Chase’s report, institutional investors view the largest cryptographic currency as a digital alternative to gold, which is traditionally considered a protective asset;

In October, investment in Grayscale Bitcoin Trust (GBTC) started to grow rapidly, while investment in ETFs for gold remained almost unchanged;

btc_gold etf.png

«This contrast confirms the idea that some investors, such as family investment firms that previously bought ETF shares for gold, may consider Bitcoin as an alternative to gold,» Sonnenshine wrote;

According to him, although GBTC remains the most popular Grayscale investment tool, Ethereum Trust also continues to grow. Recently the investments in Grayscale Ethereum Trust have exceeded
$1 billion and total assets under management reached $8.5 billion. Ethereum Trust was registered with the SEC early last month;

The growth of Grayscale products was facilitated both by inflow investments from the company’s clients and significant growth of the cryptovoltaic market — the bitcoin exchange rate exceeded $15,000 for the first time since the beginning of 2018;