Bitcoin Could Gain More Support Than Gold if Short Positions Unwind

JPMorgan analysts recently issued a note dated September 17 suggesting that Bitcoin could gain more support than gold if investors start unwinding their short positions and options used to hedge Bitcoin ETF holdings.

The bank pointed out a gap in how the two ETF markets have recovered since inflows returned after the Federal Reserve's late-July meeting: while gold ETFs have clawed back all of their earlier 2026 outflows, Bitcoin ETFs have only recovered about half of theirs.

This argument is based on positioning data rather than price action. Short interest in BlackRock's iShares Bitcoin Trust (IBIT) remains close to its highest level this year, while short interest in the SPDR Gold Shares ETF (GLD) sits below its historical average. IBIT's put-to-call open interest ratio is also higher than GLD's.

JPMorgan notes that a large pool of shorts and protective puts represents pressure that has to go somewhere. If confidence improves and hedges get unwound while investors keep their underlying ETF exposure, this could lead to an increase in demand for Bitcoin.