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      JPMorgan Analysts Predict Bitcoin Could Surpass Gold in Support Amid ETF Hedging

      JPMorgan analysts have indicated that Bitcoin may receive more support than gold if investors begin to unwind their short positions and options used to hedge Bitcoin exchange-traded fund (ETF) holdings. In a note dated September 17, the bank highlighted a disparity in the recovery of the two ETF markets following inflows after the Federal Reserve's late-July meeting. While gold ETFs have regained all of their outflows from earlier in 2026, Bitcoin ETFs have only recovered about half of theirs.

      The analysis is based on positioning data rather than price movements. Short interest in BlackRock's iShares Bitcoin Trust (IBIT) remains near its highest level this year, contrasting with the SPDR Gold Shares ETF (GLD), which has short interest below its historical average. Additionally, the put-to-call open interest ratio for IBIT is higher than that of GLD, suggesting that Bitcoin ETF investors are seeking more downside protection compared to gold investors.

      JPMorgan's argument is mechanical, focusing on market positioning rather than a fundamental preference for Bitcoin over gold. The bank posits that a significant pool of shorts and protective puts creates pressure that could lead to increased demand if confidence improves and hedges are unwound. This scenario could provide Bitcoin with a larger relative boost due to its greater hedge overhang compared to gold. However, the bank cautioned that this support would only materialize if investors are closing hedges out of increased comfort, rather than panic selling.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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