Bitcoin (BTC) broke its all-time high following the launch of ProShares‘ Bitcoin Strategy Exchange Traded Fund (BITO) on Tuesday, but JPMorgan Chase strategists believe the main reason behind the price hikes is investor concerns about inflation.
The launch of BITO, which recorded its highest organic volume on the first day for an ETF, “is unlikely to trigger an ETF,” JPMorgan strategists said in a note. New phase with significantly more new capital in Bitcoin.
Instead, JPMorgan believes that given that gold has not responded to concerns about rising cost pressures in recent weeks, Bitcoin’s new role as better inflation protection in the eyes of investors is warranted. The team stressed that the move from gold ETFs to Bitcoin funds has accelerated since September and “supports a bullish outlook for Bitcoin at the end of the year”.
JPMorgan strategists showed waning interest after the first week after the launch of Purpose Bitcoin ETF (BTCC) in Canada, claiming that the initial hype surrounding BITO could also go away in a week.
As the first Bitcoin futures linked ETF in the United States, ProShares’ Bitcoin Strategy ETF began trading on the New York Stock Exchange on October 19, at an opening price of $ 40 per share. It offers investors direct exposure to crypto futures in a regulated market.
Related: Bitcoin Futures ETF hits $ 1 billion AUM in two record breaking days
JPMorgan’s comments reflect different views in the traditional financial sector. Billionaire investor Carl Icahn praises Bitcoin as a great hedge against inflation as the next market crash looms.
Bill Winters, CEO of UK bank Standard Chartered, recently pointed to the experience of a long period of low inflation, adding that “it’s up to the people to want an alternative to fiat money.”