Bitcoin, Tokenized Gold Gain as Debasement Trade Accelerates

JPMorgan groups Bitcoin and gold under the “debasement trade,” which investors have used to hedge against declining fiat-currency purchasing power and inflation risks. Bitcoin, however, has recently failed to demonstrate resilience as a safe haven, instead tracking risk assets such as US equities more closely. Fund flows have therefore become an important gauge of market confidence. The report did not disclose the cumulative amount invested in the trade.

JPMorgan’s latest report said investors are pulling money from both Bitcoin and gold, with outflows from spot Bitcoin ETFs particularly rapid, indicating that the “debasement trade” has cooled. Analysts remain cautious on cryptocurrencies for the second half of the year because Bitcoin’s safe-haven characteristics have failed to hold. Available information on the event did not provide the report’s date, the observation period or the exact amount of the outflows.

The “debasement trade” involves allocating funds to scarce assets such as Bitcoin and gold as a hedge against inflation, rising government debt, weakening fiat currencies and geopolitical risks. A team led by JPMorgan Managing Director Nikolaos Panigirtzoglou said simultaneous outflows from both asset classes pointed to weaker demand for macro hedges, rather than a rotation from Bitcoin into gold.

JPMorgan said in a May 28, 2026, report that both Bitcoin and gold ETFs had recorded outflows over the previous two weeks, while institutional investors had also reduced futures positions. U.S. spot Bitcoin ETFs posted net outflows of $733.4 million on May 27, the largest single-day total since January 29. BlackRock’s IBIT recorded $527.8 million in outflows, its second-highest since listing, as markets bet that the United States and Iran could reach an agreement and inflationary pressures would ease.

The “debasement trade” refers to investors shifting into assets such as gold or Bitcoin to hedge against declining fiat-currency purchasing power, inflation and geopolitical risks. Following an escalation in the Iran conflict, JPMorgan observed that safe-haven allocations were rotating toward Bitcoin. Spot ETFs and CME futures have lowered barriers to institutional participation, making the shift an important sign of digital assets’ move into the mainstream.

On May 7, 2026, a JPMorgan team led by Managing Director Nikolaos Panigirtzoglou said Bitcoin ETFs had entered a third consecutive month of net inflows in May. They attracted $1.32 billion in March, $2.44 billion in April and another $1.38 billion in early May. Gold ETFs, by comparison, recorded outflows of more than $3 billion in March. If the current pace is maintained, Strategy’s Bitcoin purchases could reach about $30 billion for the full year.