BTC Outperforms Gold on Elevated Hedging Demand, Analysts Say

A recent report from JPMorgan analysts suggests that Bitcoin could benefit more than Gold if hedging demand for exchange-traded products continues to rise.

The team, led by strategist Nikolaos Panigirtzoglou, noted that both Gold and BTC ETFs experienced significant inflows after the Fed's late July meeting due to 'debasement' fears over US fiscal policy.

While Gold ETFs have recovered most of their outflows during 2026, Bitcoin has only recovered half of its own outflows. Panigirtzoglou argues that this disparity could benefit BTC holders in the near term as inflows continue to strengthen.

The report also highlighted the high levels of hedging demand around BTC, with BlackRock's IBIT having the highest short-interest levels in 2026. This contrast suggests that bitcoin still faces a more skeptical positioning backdrop than gold, perhaps due to more elevated hedging demand.