According to a recent Bloomberg article, investment banking giant JPMorgan believes it was not the BITO ETF that was launched on the New York Stock Exchange on Tuesday that pushed the primary cryptocurrency to a new all-time high.
BTC’s ATH was achieved due to inflationary concerns, not the launch of the BITO ETF
JPMorgan’s strategists believe that the most likely reason for BTC’s massive rise to a new all-time high was inflation and not the ETF BITO, which ProShares listed on the New York Stock Exchange on October 19.
Nikolaos Panigirtzoglou and other bank strategists have written that launching the ETF is unlikely to attract much new capital to its main digital asset. According to them, the reason is more people who believe that BTC is a stronger hedge against inflation than gold. Since the beginning of September, they have been monitoring the movement of cash from gold ETFs to BTC.
Investors moving from gold to BTC; The BTC ETF hype disappears quickly
According to JPMorgan experts, gold has recently been losing investor confidence in its ability to withstand inflation, and investors are increasingly selling gold and buying more BTC.
An example of this is the $ 56 billion SPDR Gold Shares (GLD) ETF, which has faced massive fundraising over the past few months and has lost $ 3.6 billion, according to Bloomberg.
JPMorgan pointed out that, in addition to BITO, a wide range of products is available to investors; Among them is the Canadian BTC ETF (BTCC). Strategists say the BTCC also had a very good start, but then the hype disappeared. Therefore, they say that the same can happen to BITO a week after its launch.
