Published on March 07, 2024 20:03 GMT+00:00edited on March 07, 2024 20:04 GMT+00:00

Despite large inflows into recently-launched spot bitcoin exchange-traded funds in the U.S., it would be unrealistic to expect bitcoin to match the notional amounts of gold within investors' portfolios, according to a recent analyst report.

The report, issued by a team of JPMorgan analysts led by Nikolaos Panigirtzoglou, noted on Thursday that risk is the critical factor often ignored in the argument suggesting bitcoin should match gold in investors' portfolios. This argument posits that bitcoin's market capitalization would need to climb to $3.3 trillion—the value of gold held for investment purposes—thereby implying bitcoin's price will more than double.

Most investors consider risk and volatility when allocating across asset classes, the analysts said. Given that the volatility of …