Bitcoin May Outperform Gold as ETF Hedging Eases

JPMorgan analysts led by Nikolaos Panigirtzoglou say Bitcoin could draw more price support than gold if hedging demand in the ETF market eases.

The analysis is based on data showing that short interest in BlackRock's iShares Bitcoin Trust (IBIT) has reached 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 higher than GLD's, indicating heavier hedging around Bitcoin. However, despite recent inflows and a build-up of futures positioning, Bitcoin still faces a more skeptical positioning backdrop than gold.