Wall Street bank JPMorgan expects that the continuing adoption of Bitcoin by both institutional and retail investors will hurt the price of gold.

Since October, money has been flowing out of gold and into Bitcoin funds like the Grayscale Bitcoin Trust which has seen a $2 billion inflow. In the same period, some $7 billion flowed out of exchange-traded funds backed by gold.

According to the JPMorgan strategists, this trend will only increase in the long run as more institutional investors take positions in cryptocurrency. In the report they said:

“The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced,”

While JPMorgan is one of the few Wall Street banks expecting a shift from gold to digital assets like Bitcoin, it is a worrying development for bulls in precious metal markets. Even if institutional investors only allocate a small percentage of their gold investments to crypto, it could have a significant impact on the market.