According to a recent analysis by JPMorgan, Bitcoin has exceeded gold in terms of investor portfolio allocation when adjusted for volatility. Nikolaos Panigirtzoglou, a managing director at JPMorgan, highlighted that Bitcoin’s allocation is 3.7 times greater than that of gold, attributing this shift to the significant inflows into spot Bitcoin ETFs. Since the approval of these ETFs in January, over $10 billion has been invested, with the potential market size projected to reach $62 billion.

JPM Securities predicts that the spot Bitcoin ETF market could expand to $220 billion within the next two to three years, potentially impacting Bitcoin’s price. This influx has already been beneficial, as evidenced by Bitcoin’s 45% increase in market cap in February alone. Net sales for spot Bitcoin ETFs hit $6.1 billion in February, a significant jump from January’s $1.5 billion.

Record inflows were observed on March 12, with over $1 billion invested in a single day. Analysts expect these numbers to grow further, especially with upcoming events such as the Bitcoin halving, which will reduce the daily supply of Bitcoin by half, potentially leading to a supply crisis within six months, according to Ki Young Ju, CEO of CryptoQuant.

Bears can’t win this game until spot Bitcoin ETF inflow stops. Last week, spot ETFs saw netflows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by US entities. At this rate, we’ll see a sell-side liquidity crisis within 6 months.

Bitcoin’s resurgence comes after a nearly three-year crypto winter, with spot Bitcoin ETF approvals serving as a pivotal moment for the crypto’s price. The crypto surpassed its previous all-time high of over $69,000 and fostered institutional adoption led by BlackRock.

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