JPMorgan Chase has published a fresh report stating that Bitcoin has failed to capitalize on its status as digital gold, falling behind actual gold. This is confirmed by the outflow of capital from exchange-traded funds (ETFs) and the decreased demand for Bitcoin futures.
This is reported by Finway
Increase in Demand for Gold
Experts at JPMorgan Chase emphasized that gold has benefited from the growing interest in hedge assets, which cannot be said for Bitcoin. According to the report, in the first quarter of 2025, $21.1 billion flowed into gold-based ETFs. Of this amount, $2.3 billion came from Hong Kong and Chinese funds, accounting for 6% and 16% of the total assets under management in these ETFs.
Market Comparison
Despite the narrowing of the market and liquidity, gold continues to be in demand, including for futures.
“Despite the narrowing of the market and liquidity, gold continues to benefit from the increasing demand for hedge assets, similar to currencies like the Swiss franc and the yen. This is evident in both ETFs and the futures market”
, the report states. Meanwhile, Bitcoin has been unable to adapt to the new market conditions. In March 2025, the capital outflow from Bitcoin-based spot ETFs amounted to nearly $768 million.
Interestingly, JPMorgan Chase had previously stated that Bitcoin’s status as digital gold is gradually diminishing. The precious metal remains the primary asset in depreciation trading, gaining from instability. This assertion has sparked debate among experts; Blockstream CEO Adam Back believes that Bitcoin will be able to displace gold as the primary hedge asset in the coming years.
However, in the first quarter of 2025, gold outperformed Bitcoin, recording a value increase of over 18%, while Bitcoin experienced a correction of more than 11%.