Bitcoin (BTC) broke through its highest price level of all time following the launch of ProShares' Bitcoin Strategy exchange-traded fund (BITO) on Tuesday, but strategists at JPMorgan Chase believe the key factor behind the price jump is concern. from investors due to inflation.
The launch of BITO, which saw the the highest natural volume of the first day in history for an ETF, is "unlikely to trigger a new phase of significantly cooler capital coming into Bitcoin," JPMorgan strategists said in a note.
Instead, JPMorgan believes that since gold failed to respond to concerns about rising cost pressures in recent weeks, Bitcoin's renewed role as a better hedge against inflation in the eyes of investors is why. main of the current bull run. The team highlighted that the shift from gold ETFs to Bitcoin funds is accelerating since September and "supports a bullish outlook for Bitcoin at the end of the year."
JPMorgan strategists exemplified the waning interest after the first week after the launch of the Purpose Bitcoin ETF (BTCC) in Canada, claiming that the initial hype surrounding BITO could fade after a week as well.
As the first ETF linked to Bitcoin futures in the United States, the ProShares Bitcoin Strategy ETF began trading on the New York Stock Exchange on October 19 at an opening price of $ 40 per share. It allows investors to have direct exposure to cryptocurrency futures on a regulated market.
Related: Bitcoin futures ETF hits $ 1B AUM in two record days
JPMorgan's comments echo those of others in traditional finance. Billionaire Investor Carl Icahn Praised Bitcoin as a great hedge against inflation as the next market crisis looms on the horizon.
Bill Winters, chief executive of the British bank Standard Chartered, recently noted the passage of a long period of low inflation, adding that โit is perfectly reasonable that people want to an alternative to fiat currency. "
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