JPMorgan Sees Bitcoin Surpassing Gold as Hedges Unwind
Financial firm JPMorgan predicts that Bitcoin will outperform gold in relative performance over the coming months if institutional investors begin unwinding their defensive hedges in exchange-traded funds.
The analysts at JPMorgan pointed out that institutional exposure across both assets increased following the Federal Reserve's July meeting, but the behavior of derivatives positions reflects a marked disparity between both markets.
While gold has led institutional recovery throughout the year with recent inflows into ETFs tied to the precious metal erasing all prior capital losses from 2026, Bitcoin-backed instruments have only offset half of the redemptions incurred over the same period.
JPMorgan's analysis suggests that crypto market participants maintain elevated levels of downside protection through options contracts, which could unleash outright spot buying and upward pressure on the relative price of Bitcoin against gold if these hedges are eased.