JPMorgan Chase says inflation concerns, not ETFs, are driving Bitcoin prices up

Bitcoin (Bitcoin) ProShares’ Bitcoin strategy exchange-traded fund (ETF) BITO broke its historical high after its launch on Tuesday, but JP Morgan Chase strategists believe that the key driver behind the price increase is investor concerns about inflation.

The release of BITO witnessed ETF’s highest ever first-day natural trading volume, “It is unlikely to trigger more new capital into the new phase of Bitcoin,” JP Morgan Chase strategist Said In a note.

On the contrary, JPMorgan Chase believes that due to the failure of gold in the past few weeks to respond to concerns about rising cost pressures, Bitcoin’s renewed role as a hedge against inflation in the eyes of investors is the main reason for the current bull market. The team emphasized that since September, the transition from a gold ETF to a Bitcoin fund has been accelerating and “supports Bitcoin’s bullish outlook through the end of the year.”

JPMorgan Chase strategists gave an example of the weakening of interest in the first week after the launch of the Target Bitcoin ETF (BTCC) in Canada, claiming that the initial hype surrounding BITO may also fade after a week.

As the first Bitcoin futures-linked ETF in the United States, ProShares’ Bitcoin Strategy ETF Start trading on the New York Stock Exchange The opening price on Tuesday was $40 per share. It enables investors to directly access cryptocurrency futures in a regulated market.

related: Bitcoin futures ETF reaches $1B AUM in record two days

JPMorgan Chase’s comments echo other comments in the traditional financial field.Billionaire investor Carl Icahn praised Bitcoin is an excellent hedge against inflation As the next market crisis is imminent.

Bill Winters, Chief Executive Officer of Standard Chartered Bank of the United Kingdom, recently noted that long-term low inflation has passed and added that “people want Alternatives to fiat currency. “