JPMorgan argues that concern about inflation and not ETFs is what is driving Bitcoin's price surge

Colombia, Distrito Capital de Bogotá, Bogotá

Published 3 years ago

ID #921

1 photo

Details Contact

Full Node

JPMorgan argues that concern about inflation and not ETFs is what is driving Bitcoin's price surge

Colombia, Distrito Capital de Bogotá, Bogotá,

Published 3 years ago

X-Node Details

Bitcoin (BTC) hit its all-time highest price level following the launch of ProShares' Bitcoin Strategy exchange-traded fund (ETF) BITO on Tuesday, but strategists at JPMorgan Chase (NYSE: JPM) believe the A key factor behind the price jump is investors' concern about inflation.

Bitcoin Futures ETF Debuts With Highest First Day "Natural" Volume: $ 1 Billion

The launch of BITO, which recorded the highest natural volume on day one for an ETF, "is unlikely to trigger a new phase of significantly fresh capital coming into Bitcoin," JPMorgan strategists said in a note.

Instead, JPMorgan believes that since gold did not 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 the main reason. of the current bull run.

The team noted that the shift from gold ETFs to Bitcoin funds has accelerated since September and "supports a bullish outlook for Bitcoin through the end of the year."