Investors shift to bitcoin amid geopolitical tensions
According to JPMorgan analysts, since the escalation of the situation around Iran in January 2020, there have been opposite trends in the inflow of funds into bitcoin ETFs and gold ETFs.
Thus, the gold fund GLD, one of the largest in the world, showed an outflow of funds of about 2.7% of the total assets under management. At the same time, the bitcoin ETF IBIT, launched in 2018, has demonstrated an inflow of investments at the level of about 1.5% of AUM.
Experts explain this divergence by the fact that investors, fearing instability in traditional markets, are increasingly considering bitcoin as a safe haven asset along with gold. Moreover, in the context of geopolitical tensions, traders prefer more liquid and volatile instruments such as cryptocurrencies, which allow them to react faster to changes in market conditions.
In general, the observed trend may indicate that bitcoin is gradually taking the place of gold as a protective asset in the portfolios of institutional investors. This confirms the growing maturity and recognition of cryptocurrencies as a full-fledged investment instrument.