U.S. banking giant JPMorgan experts believe that the recent Bitcoin ETF launch has nothing to do with the new BTC all-time high, here’s why
According to the recent Bloomberg article, investment banking giant JPMorgan believes that it was not the BITO Bitcoin ETF launched on the NYSE on Tuesday that pushed the flagship cryptocurrency to a new all-time high of $ 66,930.
“Bitcoin’s historic peak fueled by inflation concerns”
Strategists of JPMorgan reckon that the most likely reason for the massive Bitcoin rise to a new all-time high on Wednesday has been inflation, rather than the BITO Bitcoin ETF rolled out by ProShares on Fidelity’s NYSE on Oct. 19. This means BTC is on the rise due to monetary access, comments Tressis chief economist Daniel Lacalle.
Nikolaos Panigirtzoglou and the bank’s other strategists wrote that an ETF launch was unlikely to attract a lot of new capital into the leading digital asset. Rather, according to them, the reason is that people think Bitcoin is a better hedge against inflation than gold. They have been watching cash moving out of gold ETFs and into Bitcoin since the start of September.
Investors are switching from gold to Bitcoin; The BTC ETF hype is fading quickly
Gold has recently lost investor confidence in its ability to withstand inflation, according to experts at JPMorgan, and they have increasingly thrown in gold to buy more Bitcoin.
An example of this is the SPDR Gold Shares ETF holding $56 billion (GLD), which has been facing massive funds withdrawals in the past several months and has lost $3.6 billion already, according to Bloomberg data.
JPMorgan pointed out that outside of BITO, investors have a wide range of products to buy – Canadian Purpose Bitcoin ETF (BTCC) is one of them. The strategists say that BTCC also had a very good start, but then the hype faded away. Therefore, they say, the same may happen to BITO after a week into its launch.
Paul Tudor Jones says BTC won against gold
As reported by U.Today recently, billionaire investor Paul Tudor Jones said Bitcoin was winning the race against gold as more investors chose the former as an inflation hedge, rather than the gold.
He added that the world is moving into a digitized stage and, therefore, digital gold is winning out over the physical version.
As for the Bitcoin ETF launched by ProShares, Tudor Jones said he would rather own physical BTC than buy into an ETF that tracks its performance.
Peter Schiff still believes in gold
However, gold bug and vocal Bitcoin hater Peter Schiff reckons that a rally of gold is also coming soon. He drew this conclusion based on CNBC’s hosts jointly stating that gold is losing to BTC and so he considered this “exactly the analysis one would expect to hear from CNBC as fair. before a big gold rally “.
