What Drives Bitcoin’s Strength Against Gold? JPMorgan Points to the ETF Gap

JPMorgan analysts stated that Bitcoin could find more support relative to gold if hedging positions in ETFs decrease.

JPMorgan analysts said that both Bitcoin ETFs and gold ETFs have seen inflows since the end of July. However, the recovery has been stronger on the gold side. Gold ETFs have offset all outflows from early 2026, while Bitcoin ETFs have recovered about half of their early 2026 outflows.

According to analysts, demand for Bitcoin ETFs has weakened in recent days, and this situation leaves room for a recovery if the news flow improves. Bitcoin’s ability to find more support relative to gold is seen as dependent on investors reducing their hedging positions in these products.

Short position pressure around IBIT is higher

It was noted that institutional investors are carrying high positions in both gold and Bitcoin futures. JPMorgan reported that this indicates both assets are supported by institutional investors.

The main difference emerges in short positions within ETFs. Short positions on BlackRock’s iShares Bitcoin Trust ETF (IBIT) remain near the year’s highs, while these positions in the SPDR Gold Shares ETF (GLD), which tracks gold, are below the historical average.

This picture shows that investors are more cautious about Bitcoin compared to gold. The put-to-call ratio for IBIT is also higher than for GLD. This ratio indicates more intense demand for hedging around the Bitcoin ETF.