Bitcoin May Outperform Gold as Hedging Eases, JPMorgan Analysts Say

JPMorgan analysts believe that Bitcoin could see stronger price support than gold if hedging demand in the ETF market eases. According to a note from JPMorgan, short interest in BlackRock's iShares Bitcoin Trust (IBIT) has reached its highest level of the year at 45.9 million shares as of August 31.

This represents 3.53% of the float and would take 0.6 days of the fund's average trading volume to cover, about 53 million shares.

The analysts also pointed out that IBIT's put-to-call open interest ratio is higher than that of the SPDR Gold Shares ETF (GLD), indicating heavier hedging around Bitcoin.