Cryptocurrency news

JPMorgan Chase: "Institutional investors buy Bitcoin instead of Gold ETFs»

JPMorgan Chase: “Institutional investors buy Bitcoin instead of Gold ETFs»

According to a report by JPMorgan Chase, bitcoin is pulling over a portion of its investment in gold ETFs, according to Michael Sonnenschein, managing director of Grayscale Investments.

According to the data published by the managing director of Grayscale Investments, Michael Sonnenshein, from a report by JPMorgan Chase, institutional investors consider the largest cryptocurrency as a digital alternative to gold, which is traditionally considered a protective asset.

In October, investments in the Grayscale Bitcoin Trust (GBTC) began to grow rapidly, while investments in gold ETFs remained almost unchanged.

“This contrast supports the idea that some investors, such as family investment firms that have previously bought gold – backed ETFs, may view bitcoin as an alternative to gold,” Sonnenschein wrote.

According to him, while GBTC remains Grayscale’s most popular investment vehicle, Ethereum Trust also continues to grow. Recently, investments in Grayscale Ethereum Trust exceeded
$1 billion, and the total assets under management of the company reached $8.5 billion. The Ethereum Trust was registered with the SEC early last month.

The growth of Grayscale products was facilitated by both the inflow of investments from the company’s customers and the significant growth of the cryptocurrency market – the bitcoin exchange rate exceeded $15,000 for the first time since the beginning of 2018.