TL;DR
Bitcoin’s Dominance: Bitcoin has now overtaken gold in investor portfolio allocation when adjusted for volatility, with its allocation being 3.7 times greater than that of gold.
Impact of Bitcoin ETFs: The significant inflow into Bitcoin exchange-traded funds (ETFs) since their inception earlier this year has contributed to this shift, with the potential Bitcoin ETF market size possibly reaching $62 billion.
Caution and Future Trends: Despite some analysts cautioning that Bitcoin replacing gold in portfolios may not happen quickly, Bitcoin’s rise in investor portfolios is undeniable, demonstrating remarkable liquidity and investor engagement.
Bitcoin has now overtaken gold in investor portfolio allocation when adjusted for volatility, according to a JPMorgan analyst. The cryptocurrency’s allocation in investor portfolios is 3.7 times greater than that of gold.
JPMorgan managing director Nikolaos Panigirtzoglou reportedly said that the significant inflow of over $10 billion into Bitcoin exchange-traded funds (ETFs) since its inception in January earlier this year has contributed to this shift. He also claimed that the potential Bitcoin ETF market size could reach $62 billion using gold as a benchmark.
Bitcoin ETFs have proven to be a net positive for the crypto market, with the world’s largest cryptocurrency gaining over 45% in market cap in February. Net sales for spot Bitcoin ETFs climbed to $6.1 billion in February, compared to $1.5 billion in January.
However, some analysts caution that Bitcoin replacing gold in portfolios may not happen as quickly as some might think. For Bitcoin’s allocation to surpass that of gold, its market cap would need to rise to $3.3 trillion. Given the volatility in Bitcoin is around 3.7 times the volatility of gold, it would be unrealistic to expect Bitcoin to match gold within investors’ portfolios in notional amounts.
Robert Kiyosaki Reaffirms Bitcoin’s Dominance Over Traditional Assets
Despite these cautions, Bitcoin’s rise in investor portfolios is undeniable. With its trading volumes 3.7 times higher than those of gold, the cryptocurrency demonstrates remarkable liquidity and investor engagement. As the crypto market continues to evolve, it will be interesting to see how these trends develop.
In related news, famed writer Robert Kiyosaki recently reaffirmed his conviction in Bitcoin’s dominance over traditional assets like gold and silver in a post on social media. He highlighted the fixed supply of Bitcoin, capped at 21 million coins, drawing a stark contrast with the volatile pricing of precious metals.
The robustness of Bitcoin in the face of market volatility has brought Kiyosaki’s endorsement into the spotlight, especially at a time when the cryptocurrency saw a significant drop, plunging over 6.5% in the last 12 hours. Despite this downturn, Bitcoin’s current price is around $68,400, showcasing an impressive rise in recent times.
