JPMorgan: Declining hedging demand in ETFs could bolster Bitcoin

JPMorgan analysts suggest that a decrease in hedging demand for Bitcoin ETFs could provide stronger support for the asset compared to gold. While the 'debasement trade' strategy initially drove inflows into both crypto and precious metals, recent U.S. interest rate hikes, rising inflation-adjusted bond yields, and the failure of the CLARITY Act (US digital-asset market-structure bill) have weakened this trend. JPMorgan notes that while gold ETFs have recovered all year-to-date outflows, Bitcoin products have only recovered about half. High short interest and put-to-call ratios for the BlackRock (BlackRock) iShares Bitcoin Trust ETF (IBIT) compared to the SPDR Gold Shares ETF (GLD) indicate persistent market skepticism toward Bitcoin, though institutional support remains steady.