Heavy Bitcoin ETF Hedging Could Fuel Bigger Rally Than Gold: Walter Bloomberg

A group of JPMorgan analysts said Bitcoin could benefit more than Gold if hedging demand for exchange-traded products continues to rise, Walter Bloomberg reports. The team also highlighted a growing disparity between the two asset classes, and the gap could narrow soon, much to the benefit of the premier cryptocurrency.

Bloomberg tweeted:

Bloomberg references a recent report produced under the leadership of JPMorgan strategist Nikolaos Panigirtzoglou. The analysis shows that both Gold and BTC ETFs experienced considerable inflows after the Fed’s late July meeting. The primary driver of the sudden inflows was “debasement” fears that US fiscal policy is heading in the wrong direction due to excessive quantitative easing.

Inflows, Derivatives Reinforce BTC Hedging Narrative

Gold ETFs have already recovered most of the outflows during the 2026 calendar year. The precious metal is recovering strongly, while Bitcoin has recovered only half of its own outflows. On the plus side, Panigirtzoglou argues this disparity could benefit BTC holders in the near term as inflows continue to strengthen.

Another reason the JPMorgan panel is upbeat on Bitcoin is the ETF short-interest situation in the market. BlackRock’s IBIT currently has the highest levels of this crucial metric in 2026, while the premium Gold-backed ETF SPDR Gold Shares ETF’s short interest is around 3.5%, well below its historic average.