The fact that the new funds coming to the Bitcoin investment fund Grayscale and the exit from the gold ETFs are almost equal, “Is Bitcoin an alternative to gold?” reinforced their beliefs. The report, shared by JPMorgan analysts, also contained data supporting these conclusions.
Grayscale, one of the leading Bitcoin investment funds in the cryptocurrency industry, is not able to maintain its performance in the first quarter of 2020, while multiplying its earnings. Earlier this year, the price of gold, which increased its price to over 2 thousand dollars on an ounce basis, fell by about 10% after its peak in August.
JPMorgan analysts point to this rise of Grayscale and perhaps “Bitcoin or gold?” They made explanations that would put an end to their comparison. According to a report by JPMorgan analysts, people may be giving up gold and shifting their investments to Bitcoin.
They are turning to Bitcoin as an alternative to gold
New York-based investment bank JPMorgan analysts stated in a report published on Friday that it was remarkable that the fund inflow to Grayscale was almost equal to the gold ETF exit. “What makes the flow of funds for Grayscale Bitcoin Trust even more impressive in the past 5 weeks may be the equivalent amount of gold ETF outflows since mid-October,” analysts said.
“This situation supports the idea that some investors who previously preferred gold ETFs, such as family businesses, may turn to Bitcoin as an alternative to gold.”
According to the statement from the Grayscale front, this is not a surprising result. Especially in family businesses, because it is in a cycle where money changes hands generationally; It can be said that new generations prefer innovative Bitcoin investment instead of old habitual gold. Şant Manukyan, IS Investment International Markets Manager, made a parallel statement a few days ago. Manukyan stated in his statement that Bitcoin “may have started to steal from the gold market”.
There is only one direction for Grayscale: Up
While JPMorgan loses its gold investors, leading Bitcoin fund Grayscale continues to grow stronger. Grayscale Managing Director Michael Sonneshein told The Blcok that 2020 will bring an unprecedented gain for the cryptocurrency investment management company.
Sonneshein said 2019 was already a record year for the company, and in 2020 the momentum was again in favor of the company. Grayscale General Manager said, “In the third quarter of 2020, the company’s earnings exceeded $ 1 billion; “There is only an upward momentum in the fourth quarter”.