- Bitcoin investment allocations have surpassed those of gold, highlighting growing mainstream adoption of cryptocurrencies according to JPMorgan. Bitcoin ETF inflows total $9 billion, with potential market size estimated at $62 billion.
- February saw a major cryptocurrency market rally, with Bitcoin up 45% and Ethereum up 47%. Altcoins, DeFi, and NFTs also benefited from double-digit gains.
- Bitcoin’s value surged 33% in February to a new all-time high, coinciding with $6.1 billion inflows into Bitcoin ETFs. Crypto mining stocks also hit record highs amid the momentum.
A recent report from JPMorgan suggests that Bitcoin has surpassed gold in terms of portfolio allocation among investors. This highlights the growing mainstream adoption of cryptocurrencies like Bitcoin.
Bitcoin Allocation Exceeds Gold
Analysts at JPMorgan noted that Bitcoin’s allocation in investor portfolios is now 3.7 times higher than that of gold when accounting for volatility. The total inflows into Bitcoin ETFs since their launch amounts to $9 billion. JPMorgan estimates the potential Bitcoin ETF market size could be as high as $62 billion if benchmarked against gold.
Cryptocurrency Market Rally in February
The month of February saw an extremely bullish period for the overall cryptocurrency market. The total crypto market capitalization rose by 40% month-over-month to reach $2.2 trillion. Driving this growth was Bitcoin’s 45% increase and Ethereum’s 47% rise. While altcoins lagged behind, they still saw double-digit gains. Decentralized finance (DeFi) and non-fungible tokens (NFTs) also benefited from the rally.
Continued Momentum for Bitcoin
In February, net sales of spot Bitcoin ETFs hit $6.1 billion, up significantly from January’s $1.5 billion. Over the past two weeks, Bitcoin’s value has surged 33% to reach another all-time high. This coincided with large inflows into Bitcoin ETFs. Crypto mining stocks also touched new record highs last month amid the momentum.
Conclusion
The data shows increasing adoption of Bitcoin among investors compared to traditional assets like gold. If current trends continue, Bitcoin may cement itself as a mainstream portfolio allocation for years to come. However, the cryptocurrency market remains highly volatile, posing risks as well as opportunities.
