A group of JPMorgan analysts said Bitcoin could benefit more than Gold if hedging demand for exchange-traded products continues to rise, Walter Bloomberg reports. The team also highlighted a growing disparity between the two asset classes, and the gap could narrow soon, much to the benefit of the premier cryptocurrency.
Bloomberg tweeted:
Bloomberg references a recent report produced under the leadership of JPMorgan strategist Nikolaos Panigirtzoglou. The analysis shows that both Gold and BTC ETFs experienced considerable inflows after the Fed's late July meeting. The primary driver of the sudden inflows was “debasement†fears that US fiscal policy is heading in the wrong direction due to excessive quantitative easing.
Inflows, Derivatives Reinforce BTC Hedging Narrative
Gold ETFs have already recovered most of the outflows during the 2026 calendar year. The precious metal is recovering strongly, while Bitcoin has recovered only half of its own outflows. On the plus side, Panigirtzoglou argues this disparity could benefit BTC holders in the near term as inflows continue to strengthen.
Another reason the JPMorgan panel is upbeat on Bitcoin is the ETF short-interest situation in the market. BlackRock's IBIT currently has the highest levels of this crucial metric in 2026, while the premium Gold-backed ETF SPDR Gold Shares ETF's short interest is around 3.5%, well below its historic average.



 
The derivatives market reinforces this position as the put-to-call open interest ratio for IBIT exceeds that of GLD. Investors are therefore investing much more in downside protection in BTC than in Gold.
This contrast suggests that bitcoin still faces an overall more skeptical positioning backdrop than gold, perhaps due to more elevated hedging demand, despite the recent inflows and build-up of futures positioning,†the report states.
The Future
According to JPMorgan analysts, current elevated hedging around BTC, while warranted, could become a source of strength for the digital currency. If BTC price stabilizes and investors become less cautious over time by winding down the protections.
“From a positioning point of view, the more elevated short interest in the IBIT vs. GLD ETF could create more support for bitcoin vs. gold from here if hedging demand is reduced,†the report concluded.
Notably, conventional financial institutions like JPMorgan are undergoing a redemption arc when it comes to crypto, especially BTC itself. Historically, the bank has had a love-hate relationship with BTC, with CEO Jamie Dimon reportedly calling it a “fraud†back in 2017.
