Institutions are starting to ditch Gold ETFs for Bitcoin

In what is likely to be common place going forward, but was unheard of a few years ago, institutions are starting to ditch gold for bitcoin.

We know that institutions are starting to dip their toes into bitcoin but it appears some of that may be at the expense of gold.

Gold has historically been one of the de facto store of value investments for both large and small investors, and while that narrative may not change overnight, it does appear to be starting to be weaken.

Simply looking at fund flows over the course of this year we can see that flows into the Grayscale bitcoin trust continue to skyrocket while flows in gold ETFs are looking much less steep by comparison.

JPMorgan highlighted this trend in a recent research report, a chart of which can be seen here:

(Source: https://u.today/jpmorgan-says-institutions-ditching-gold-etfs-for-bitcoin)

The bitcoin bull has been set loose

While the demand for gold continued to increase through much of this year, it has stalled out recently.

As evidenced by the chart above, it looks like demand is either flat or slightly decreasing for gold ETFs from investors over the last couple months.

This is in start contrast to a chart of inflows into the Grayscale Bitcoin Trust, which has seen record inflows just about every quarter going back two years.

The last couple months for the Grayscale product has shows a massive spike in demand while demand for gold ETFs is flat to slightly decreasing.

These charts lead the JPMorgan researchers to concluded that investors formerly interested in gold as an investment may starting to be looking towards bitcoin for their store of value investment needs.

It also doesn't hurt that bitcoin is the best performing asset year to date, of the last year and the last 2 years.

Institutions can only take so much before they eventually pile in.

One PayPal starts enabling bitcoin purchases in the coming weeks the price of bitcoin is really going to start surging.

Stay informed my friends.

-Doc