Institutional investors appear to prefer bitcoin over gold, as JP Morgan says.

JPMorgan analysts said Grayscale’s bitcoin trust saw cumulative inflows through October, whereas gold exchange-traded funds (ETFs) saw “modest outflows” since mid-October, as told on a research note published last Friday. According to the analyst’s opinions: “This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at bitcoin as an alternative to gold”.

According to analysts, both retail and institutional investors are driving demand for Grayscale’s Bitcoin trust. The trust currently manages $7.6 billion worth of assets in total.

The potential long-term upside for bitcoin is “considerable” if it competes “more intensely with gold as an ‘alternative’ currency,” according to the analysts. However, bitcoin’s market cap would have to rise ten times from current levels “to match the total private sector investment in gold ETFs or bars and coins.”

Similarly analysts point out that corporate endorsements of bitcoin in general and PayPal’s support, in particular, have also propelled the demand for bitcoin. Bitcoin, however, appears to be “close to overbought levels on our momentum signal framework, something that could potentially trigger profit taking or mean reversion flows,” said the analysts.

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