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JPMorgan Says Institutions Ditching Gold ETFs for Bitcoin

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Sun, 8/11/2020 - 11:20
JPMorgan Says Institutions Ditching Gold ETFs for Bitcoin
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JPMorgan Chase, the largest U.S. bank by total assets, notes that Bitcoin is eating away at demand for gold ETFs in a report shared by Michael Sonnenshein, the managing director of Grayscale Investments.  

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Institutional investors, such as family offices, now view the world’s largest cryptocurrency as a digital alternative to the yellow metal that used to be a go-to safe haven.          

In October, the flow trajectory of the Grayscale Bitcoin Trust (GBTC) became significantly steeper while gold ETFs remained basically flat. 

Grayscale
Image by @Sonnenshein

“This contrast lends support to the idea that some investors that previously invested in #gold ETFs such as family offices, may be looking at #bitcoin as an alternative to gold.”

In September, Bloomberg reported about Grayscale outperforming 97 percent of all U.S. ETFs.   

The bullish report caps off a stellar week for the crypto asset management firm. According to Sonnenshein, his company recorded the largest raise across its suite of products that totaled $237 mln.

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While GBTC remains by far its most popular investment vehicle, the Ethereum Trust is also gaining more traction with a record-shattering $58 mln. 

Last month, Grayscale’ Ethereum Trust became an SEC-reporting company, meaning that it now has to file quarterly and annual disclosures with the U.S. securities regulator.

As reported by U.Today, Grayscale had more than $1 bln worth of inflows in the third quarter of 2020. Its year-to-date inflows are now nearing a whopping $3 bln. Overall, Grayscale has more than $9.1 bln worth of assets under management.

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