Bitcoin could gain additional support against gold if investors begin reducing defensive positions around Bitcoin exchange-traded funds (ETFs), according to analysts at JPMorgan Chase & Co. T
Bitcoin could gain additional support against gold if investors begin reducing defensive positions around Bitcoin exchange-traded funds (ETFs), according to analysts at JPMorgan Chase & Co. The firm highlighted a significant difference in positioning between the two assets, with Bitcoin investors maintaining more protection against potential losses.
Bitcoin and gold ETFs both saw renewed inflows following the Federal Reserve’s July meeting as investors returned to the so-called debasement trade. However, gold has recovered more strongly, with gold ETFs recouping all of their earlier 2026 outflows, while Bitcoin ETFs have recovered about half. Bitcoin ETF demand has also weakened in recent days, leaving room for a potential recovery if market conditions improve.
The more notable difference appears in ETF positioning. Short interest in BlackRock’s iShares Bitcoin Trust ETF (IBIT) remains close to its highest level of 2026, while short interest in the SPDR Gold Shares ETF (GLD) is below its historical average. IBIT also has a higher put-to-call open interest ratio than GLD, indicating stronger demand for downside protection around Bitcoin.
The analysts said this defensive positioning could become a source of support if investors begin unwinding their hedges. Reducing short positions and downside protection could potentially strengthen Bitcoin’s position relative to gold, although the outcome would also depend on liquidity, interest rates, inflation expectations and broader risk appetite.
Institutional exposure to both assets remains elevated through the futures market, but Bitcoin continues to carry a more cautious positioning backdrop. Gold currently leads the recovery in ETF flows, while Bitcoin has greater room for positioning to shift if hedging demand declines. The comparison points to a potential market catalyst for Bitcoin rather than a guaranteed advantage over gold.
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