Bitcoin (BTC) Has Failed to Meet Expectations as a Safe-Haven Asset - Crypto Daily

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Crypto Daily - Global uncertainty has pushed traders toward traditional safe-havens, leading to massive inflows into gold ETFs and outflows from Bitcoin ETFs in the first quarter of 2025, according to JPMorgan (NYSE:JPM) analysts.

Key Takeaways:

* World Gold Council data, cited in a recent report by JPMorgan, shows that gold ETFs globally registered net inflows of $21.1 billion in Q1 2025.

* Among this, China and Hong Kong together contributed $2.3 billion in inflows, making up 16% of total gold ETF assets under management.

* In stark contrast, Bitcoin ETFs saw outflows for the third consecutive month, highlighting a divergence in investor sentiment toward crypto and traditional safe-havens.

* Despite the narrative of Bitcoin as a new-age safe-haven asset, the analysts noted that it failed to attract any significant inflows during a period of heightened market turbulence.

* Instead, traders flocked toward traditional havens like U.S. Treasuries, Swiss franc, and yen, aggregating net inflows of $156 billion, $30 billion, and $28 billion respectively.

The report highlights a preference shift among traders as they navigate global uncertainties. While China's speculative appetite for Bitcoin appears to be waning, Hong Kong saw the largest outflows from Bitcoin ETFs in Q1 2025.

Moreover, the analysts observed that Bitcoin’s price movements suggest a lack of support at the $62,000 level, which could be viewed as a key psychological barrier in the near term.

The report comes amid a period of macroeconomic instability, with traders seeking stability in traditional assets over cryptocurrencies, at least for the moment. However, the narrative might change if Bitcoin manages to reclaim its role as a better safe-haven asset, a feat yet to be achieved.

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As part of its coverage of the first quarter earnings reports, JPMorgan (NYSE:JPM) noted that World Gold Council data showed that gold ETFs globally registered net inflows of 21.1 billion in Q1 2025. Of this, China and Hong Kong together contributed 2.3 billion in inflows and 16 percent of total gold ETF assets under management. In stark contrast, Bitcoin ETFs saw outflows for the third consecutive month (1.3 billion in total), highlighting a divergence in investor sentiment.

suggest that traders preferred traditional havens during the quarter. Indeed, U.S. Treasuries attracted net inflows of 156 billion, Swiss franc saw 30 billion in inflows, and yen had net inflows of 28 billion. China also saw outflows from North Sea Brent crude and WTI crude, amounting to 20.4 billion and 14.8 billion respectively.

Hong Kong on the other hand saw the largest outflows from Bitcoin ETFs in Q1 2025.

Moreover, the analysts observed that Bitcoin’s price movements suggest a lack of support at the 62,000 level, which could be viewed as a key psychological barrier in the near term.

The report comes amid a period of macroeconomic instability, with traders showing a preference for traditional assets over crypto in the present instance. However, the narrative might change if Bitcoin manages to reclaim its role as a better safe-haven asset, a feat yet to be achieved.

The post Global uncertainty drove traders toward traditional safe-havens in Q1 - JPMorgan appeared first on Crypto Daily.