Investors and analysts have largely attributed the breakthrough to optimism over greater mainstream acceptance following the successful launch of the inaugural exchange-traded fund for U.S. Read more: Bitcoin Surges to All-Time High in Crypto’s ‘Validating Moment’īitcoin reached a milestone on Wednesday when it crossed above $66,000 for the first time. “The initial hype with BITO could fade after a week,” they said.
The bank’s strategists point to the launch of the Purpose Bitcoin ETF (ticker BTCC) in Canada, which saw a warm reception at first that then slowly waned.
Meanwhile, Bitcoin investors already have a “multitude of investment choices,” JPMorgan said. Take, for instance, the $56 billion SPDR Gold Shares ETF, ticker GLD, which is on pace to see its fourth straight month of outflows that so far total more than $3.6 billion over that span, according to data compiled by Bloomberg. “This flow shift remains intact supporting a bullish outlook for Bitcoin into year-end,” the strategists said. Gold has failed, in recent weeks, to respond to heightened concerns over rising cost pressures, and the shift away from gold ETFs into Bitcoin funds has gathered pace. Growing concerns over inflation have renewed investors’ interests in assets that can act as a hedge - and that includes Bitcoin. “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.” “By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin,” wrote strategists including Nikolaos Panigirtzoglou, referring to the ProShares Bitcoin Strategy ETF. Bitcoin futures ETF is driving the digital currency to record highs, according to JPMorgan Chase & Co. (Bloomberg) - Inflation concerns rather than exuberance about the first U.S.
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