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JPMorgan: “Bitcoin growth is driven by fear of inflation”

Analysts at JPMorgan Chase Bank believe that Bitcoin’s rise to record highs is driven by fears of rising dollar inflation, and not by the launch of a crypto ETF in the United States.

On October 19, ProShares launched the first US Bitcoin Futures ETF. Already on the first day, the volume of trading in the fund’s shares exceeded $ 1 billion. However, according to JPMorgan analysts, “it does not seem that the launch of the fund has become an incentive to attract significant capital to the cryptocurrency industry.”

“We believe that bitcoin is now perceived as a better inflation hedging asset than gold. This is also evidenced by the outflow of funds from ETFs for gold to funds for bitcoin, which increased in September, “- said the chief strategist of JPMorgan Nikolaos Panigirtzoglou (Nikolaos Panigirtzoglou).

As an example, Bloomberg
leads SPDR Gold Shares ETF with a capitalization of $ 56 billion. Institutional investors have withdrawn funds from this fund for the fourth month in a row. During this time, the instrument “lost weight” by $ 3.6 billion.

As for the ETF on bitcoin BITO futures, launched by ProShares, JPMorgan analysts expect a noticeable decrease in interest in it in a week. Such thoughts are prompted by the behavior of investors in Canada, where cryptocurrency ETFs were approved for a long time. There, investors accepted such funds well, but then cooled off to them.

As of Wednesday, the trading volume of the BITO fund was $ 1.2 billion, and the capitalization reached $ 1.1 billion, This is the fastest growth to such a mark in the history of American ETFs.

Earlier, Nikolaos Panigirtzoglu said that ETH is too overvalued and should be worth $ 1,500 per coin. At the moment, the market does not agree with the analyst’s opinion.

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