JPMorgan says bitcoin and gold ETFs show sharp flow divergence since Iran war

JPMorgan analysts report a sharp divergence in flows between Bitcoin and gold exchange-traded funds (ETFs) since the Iran war started late last month. The largest gold ETF, GLD, saw outflows equal to about 2.7% of assets under management, whereas BlackRock's IBIT recorded inflows of approximately 1.5% of assets over the same period. This trend reversed the year-to-date advantage gold ETFs previously held. Institutional positioning also reflects a shift away from Bitcoin, evidenced by increased short interest in IBIT and a higher put-to-call open interest ratio for IBIT options, suggesting institutional hedging against potential downside risk. However, despite recent gold ETF strength, indicators like options-implied volatility and market breadth suggest less support for gold, while Bitcoin's volatility profile shows compression, reflecting deeper institutional ownership.

(Source：The Block)