JPMorgan Chase: Bitcoin and gold ETF fund flows diverged significantly after the outbreak of the Iran war.

According to ME News, on March 13 (UTC+8), JPMorgan analysts stated that since the outbreak of the Iran-Iraq War on February 27, there has been a significant divergence in fund flows between Bitcoin and gold ETFs. The largest gold ETF, GLD, saw an outflow of approximately 2.7%, while the largest spot Bitcoin ETF, IBIT, recorded an inflow of approximately 1.5%. Since last October, there has been a rotation from Bitcoin to gold, particularly among retail investors, but IBIT's cumulative total inflows since 2024 are still approximately twice that of GLD. Regarding institutional holdings, IBIT's short interest has increased while GLD's has decreased, indicating that hedge funds and other institutions are reducing their Bitcoin exposure and favoring gold. IBIT's put/call open interest ratio has consistently been higher than GLD's since last November, showing increased demand from institutional investors to hedge against Bitcoin's downside risk. Although the decreased short interest and lower put/call ratio for gold suggest a more bullish positioning, GLD's implied volatility has increased more significantly, and its market breadth is weaker. Meanwhile, Bitcoin's volatility showed signs of compression, reflecting deepening institutional holdings and improved market liquidity. (Source: ME)