JPMorgan Chase: Inferring Bitcoin market and investment direction solely based on ETF flows can be misleading

JPMorgan Chase believes that it is misleading to infer the Bitcoin market and investment direction solely based on ETF flows. Its latest research data shows that since early 2024, Bitcoin funds have received an inflow of $10.6 billion, while physical gold ETFs have seen an outflow of $7.6 billion. However, this phenomenon does not indicate a capital shift.

 

JPMorgan Chase points out that the outflow from gold ETFs is mainly because individual investors are buying gold bars instead, while the growth in Bitcoin ETFs is primarily due to investors transferring funds from their original Bitcoin wallets into these funds. This estimate underestimates the behavior of individuals and private investors purchasing gold in forms of bars and coins, while overestimating their purchase volume for Bitcoins.