Gold is being phased out of investment portfolios in favor of bitcoin.

 The volume-adjusted, investor portfolio allocations for Bitcoin are now higher than those for gold. The cryptocurrency's price hit a new record high this week as investors poured money into the market. Within a few years, the new bitcoin spot ETFs may have $62 billion worth of the cryptocurrency.

In a report published on Thursday, JPMorgan stated that, according to one metric, the new price highs of bitcoin have made the currency more popular among investors than gold in their portfolios. For a long time, the dominant cryptocurrency has been compared to gold, with some seeing it as a digital representation of the commodity.

Given that an estimated $3.3 trillion is held for investment purposes, it seems to reason that gold should comprise a larger percentage of portfolios than bitcoin. With a market valuation of $1.3 trillion, JPMorgan explained that comparing the two assets by notional amounts would make bitcoin's allocation look lower.

On the other hand, bitcoin transactions are 3.7 times larger than gold's. Following this adjustment, JPMorgan determined that the allocation of bitcoin is equivalent to $45,000 worth of gold.

"In other words, at $66k currently, the implied allocation to bitcoin within investors' portfolios has already surpassed that of gold in vol adjusted terms," according to the paper.

Even if it has since pared gains, Bitcoin's price has soared this week, breaking above its $69,000 all-time high. On Friday, the price of gold reached a fresh all-time high of $2,155. While interest rate decrease speculation has been a boon to both assets, the impending halving event and the advent of bitcoin spot ETFs have given bitcoin an extra lift.

Although this may not be entirely new capital, JPMorgan reports that these funds have received $9 billion in total inflows. If bitcoin funds follow the lead of gold ETFs, they might amass $62 billion.

"In our opinion, this is a realistic target of the potential size of spot bitcoin ETFs over time perhaps within a period of two to three years, though much of the implied net inflow could represent a continued rotational shift from existing instruments and venues to ETFs," according to the analysts