Bitcoin Could Outshine Gold, Predicts JPMorgan Amidst ETF Hedges

JPMorgan analysts are sounding the alarm on Bitcoin's potential outperformance of gold. According to their report, if hedging demand eases, Bitcoin could give gold more support than it currently receives.

The analysts pointed out that while gold ETFs have fully recovered all their 2026 outflows, Bitcoin ETFs have only recovered about half. Short interest in BlackRock's iShares Bitcoin Trust sits near its highest level this year, while short interest in the SPDR Gold Shares ETF is below its historical average.

Bloomberg senior ETF analyst Eric Balchunas predicts that Bitcoin ETFs will eventually triple gold in assets, driven by generational wealth transfer and growing institutional comfort as Bitcoin's volatility falls. He notes that big institutional money still prefers gold today due to Bitcoin's higher volatility and correlation with equities.