Bitcoin trust Grayscale Investments has begun to outperform gold-based exchange-traded funds (ETFs) in terms of inflows, according to financial analysts' reports. Institutional investors played a major role in this process.
Analysts have long been talking about the significant prospects for Bitcoin, especially in terms of long-term growth. However, there was no talk of full-fledged competition with gold until now. And so far it is not going - for this, the capitalization of BTC must grow 10 times - only then it will begin to correspond to the number of funds that individuals invest in different forms of gold through ETFs. But the beginning of this process has already been laid.
The institutional investors are starting to look more positively on the use of bitcoin as a store of value. According to an expert from JPMorgan, Nikolaos Panigirtzog, this is due to the desire to find alternatives to gold and fiat currencies that are more independent of external circumstances (especially the coronavirus pandemic). And crypt may well qualify for this position. Including because Bitcoin has successfully recovered after the March collapse, which many believed to be caused by the problems with the global economy due to the pandemic.
Should you trust JPMorgan? Yes. This financial holding is one of the "big four" US banks, specializing in deposits, assets, and investment banking. And for many years now it has been successfully conducting its activities, focusing precisely on the forecasts of its own analysts.
An increase in the institutional factor is definitely a positive moment from the point of view of the development of the cryptocurrency segment of the economy. More investment, more resources for development, more stability, more robust regulation. And the crypt is getting closer and closer to the official global recognition. And the more stable and active the market is, the better for ordinary users.
Published on the EXBASE.IO based on materials from forklog.com