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

PANews reported on March 13th, citing The Block, that JPMorgan analysts stated a significant divergence in fund flows between Bitcoin and gold ETFs since the outbreak of the Iran-Iraq War on February 27th. The largest gold ETF, GLD, saw approximately 2.7% of its assets flow out, while the largest spot Bitcoin ETF, IBIT, recorded approximately 1.5% of its assets flow into it. 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 roughly twice that of GLD.

In terms of institutional holdings, short interest increased in IBIT while decreased in GLD, indicating that hedge funds and other institutions reduced their Bitcoin exposure and favored gold. IBIT's put/call open interest ratio has consistently been higher than GLD's since November of last year, showing increased demand from institutional investors to hedge against Bitcoin's downside risk. While the decreased short interest and lower put/call ratio in gold suggest a more bullish positioning, GLD's implied volatility rose more significantly, and market breadth was weaker. Meanwhile, Bitcoin's volatility showed signs of compression, reflecting deepening institutional holdings and improved market liquidity.