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JPMorgan Chase & Co(NYSE:JPM) said Thursday that Bitcoin(CRYPTO: BTC) could outperform gold if ETF hedging eases, as Bloomberg’s Eric Balchunas predicted Bitcoin ETFs will eventually triple gold in assets.
What JPMorgan’s Report Says
In a note cited by The Block, JPMorgan analysts led by Nikolaos Panigirtzoglou pointed out that gold ETFs have fully recovered all their 2026 outflows while Bitcoin ETFs have recovered only about half.
The debasement trade that drove inflows into both assets after the July Fed meeting has weakened over the past week as inflation-adjusted bond yields rose and the CLARITY Act failed in the Senate.
Moreover, short interest in BlackRock’s(NYSE:BLK) iShares Bitcoin Trust(NASDAQ:IBIT) sits near its highest level this year, while short interest in the SPDR Gold Shares ETF(NYSE:GLD) sits below its historical average.
The put-to-call ratio is also higher for IBIT than GLD, pointing to elevated hedging demand around Bitcoin relative to gold.
“This contrast suggests that Bitcoin still faces an overall more skeptical positioning backdrop than gold,” the analysts wrote, adding that if hedging demand falls, it could give Bitcoin more support than gold from current levels.
Why Balchunas Sees Bitcoin Tripling Gold
Bloomberg senior ETF analyst Eric Balchunas said in a video posted on X that Bitcoin ETFs will ultimately triple gold ETFs in total assets, driven by generational wealth transfer and growing institutional comfort as Bitcoin’s volatility falls.
“As the younger investors get more money and grow up with Bitcoin as their store of value, I do believe that Bitcoin ETFs will triple gold in assets,” Balchunas said.
He noted that big institutional money still prefers gold today because of Bitcoin’s higher volatility and its historical tendency to move like the Nasdaq 100.
But as volatility and correlation to equities both decline, he sees an inflection point coming where large institutions treat Bitcoin as a reliable store of value and safe haven.
“Bitcoin is like gold as a teenager,” Balchunas said. “Gold is 5,000 years old. Bitcoin is 17 years old.”
Why the Gap Between Bitcoin and Gold Matters Now
JPMorgan’s data shows Bitcoin ETF demand has pulled back more than gold over the past week, leaving more room for a recovery if sentiment improves.
Futures positioning in both assets remains elevated, suggesting institutional investors have not walked away from either trade.
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