Bitcoin (BTC) has reached a record high since the launch of the exchange-traded fund (ETF) BITO from ProShares on Tuesday, but strategists at JPMorgan Chase believe that the main driver of the price rally is investor concerns about inflation. …

Strategists at JPMorgan noted in a note that the BITO launch, which resulted in the highest natural volume ever on the first day of ETFs, “is unlikely to launch a new phase with much larger new capital inflows into bitcoin.”

Instead, JPMorgan believes that since gold has failed to respond to concerns about rising price pressures over the past few weeks, Bitcoin’s renewed role as the best inflation hedge in the eyes of investors is the main reason behind the current bullish move. The team stressed that the transition from gold exchange-traded funds to bitcoin funds has accelerated since September and “maintains an optimistic outlook for bitcoin for the rest of the year.”

JPMorgan strategists showed a dip in interest after the first week since the launch of the Bitcoin Target ETF (BTCC) in Canada, and said that the initial buzz around BITO could also disappear within a week.

When the first ETF was linked to Bitcoin futures in the United States, the strategic Bitcoin ETF ProShares began trading on the New York Stock Exchange on Tuesday at an opening price of $40 per share. This gives investors direct access to cryptocurrency futures contracts in a regulated market.

On the topic: Bitcoin futures ETF reaches $1 billion in two record days

JPMorgan’s comments mirror those of other regular financial representatives. Billionaire investor Carl Icahn has described Bitcoin as a good hedge against inflation when the next market crisis threatens to loom.

Bill Winters, chief executive of UK bank Standard Chartered, recently noted that a long period of low inflation had passed, adding that “it is quite reasonable that people would want an alternative to fiat currency”.

Source: CoinTelegraph