JPMorgan Chase: If ETF hedging demand decreases, Bitcoin may receive more support than gold

J.P. Morgan analyst Nikolaos Panigirtzoglou's team stated in a report on Wednesday that if ETF hedging demand decreases, Bitcoin may receive more support compared to gold. The report mentioned that after the Federal Reserve's meeting at the end of July, "devaluation trades" returned, with both Bitcoin and gold ETFs experiencing inflows.

The gold ETF has recovered all outflows from earlier in 2026, while the Bitcoin ETF has recovered about half. BlackRock iShares Bitcoin Trust ETF (IBIT) short positions remain close to year-to-date highs, while SPDR Gold Shares ETF (GLD) short positions are below historical averages, and the put/call ratio for IBIT is also higher than that for GLD.

Analysts stated: From a positioning perspective, the higher short positions of IBIT relative to GLD may provide more support for Bitcoin compared to gold if hedging demand decreases.