Analysts at banking giant JPMorgan Chase note that the new Bitcoin Futures ETF is not the reason for BTC’s surge to a new all-time high.
More so, JPMorgan tells Bloomberg that concerns over inflation are the reason for the surge. He says it’s not the excitement over the launch of the first-ever BTC Futures ETF.
“By itself, the launch of BITO is unlikely to trigger a new…”
“phase of significantly more fresh capital entering Bitcoin…” JPMorgan continues.
“Instead, we believe the perception of Bitcoin as a better inflation hedge than…”
“gold is the main reason for the current upswing, triggering a…”
“shift away from gold ETFs into Bitcoin funds since September.”
Furthermore, JPMorgan talks on BITO, the quickest ETF to reach a $1 billion valuation in just two days. He says it could soon lose momentum as competing ETFs hit the market. Thereby, giving investors a “multitude of investment choices.”
“The initial hype with BITO could fade after a week.”
Lastly, JPMorgan follows after the billionaire real estate tycoon Barry Sternlicht statement on investing in bitcoin and other crypto. This is due to concerns about Western nations increasing inflation by printing too much money.
Conclusively, Bitcoin makes a record high of $66,988 on October 20th, then declines to $62,779 at time of writing, according to CoinGecko.
