Bitcoin and gold have seen markedly different investment patterns as geopolitical tensions have increased following the conflict in Iran.
According to an analyst report from JPMorgan Chase, exchange-traded funds (ETFs) for the two assets have shown different fund flows since the war broke out.
The world's largest gold ETF, SPDR Gold Shares (GLD), reportedly experienced an outflow of funds of about 2.7% of its total assets under management.
At the same time, the largest Bitcoin ETF managed by BlackRock, iShares Bitcoin Trust (IBIT), recorded an inflow of funds of about 1.5%.
This movement is seen as a change in investor sentiment that was previously more inclined towards gold.
Since October last year, many investors, especially retail investors, have shifted their investments from Bitcoin to gold, causing Bitcoin ETFs to experience fund outflows while gold ETFs received strong inflows.
However, the situation began to change after the Iran conflict, when interest in Bitcoin resumed.
Despite the temporary shift between the two assets, Bitcoin ETFs still lead in total long-term fund flows.
According to JPMorgan analysts, the amount of funds inflows into IBIT since 2024 is almost double that of the GLD gold fund, indicating continued strong demand for the crypto asset.
At the same time, institutional investors are seen taking a more cautious approach to Bitcoin by increasing hedging activities through the options market.
However, Bitcoin volatility is showing signs of stabilizing, which analysts say reflects improved market liquidity and increased institutional investor involvement.
Interestingly, JPMorgan Chase still maintains an optimistic view of the future of crypto.
The investment bank previously stated that its long-term target for the price of Bitcoin could reach around $266,000 based on a comparison of its value with gold after taking into account the volatility of both assets.
