- The initial hype with BITO could fade after a week.
- Gold used to be an effective tool to hedge against inflation.
- The second bitcoin futures ETF in the U.S. launched Friday.
As opposed to investment opportunities in newly created futures trading exchange-traded funds. According to the global investment firm JPMorgan, inflation fears are driving bitcoin prices to record highs (ETFs). “The flow shift continues intact, supporting a bullish prognosis for bitcoins through year-end.” The business said, noting that investors are shifting their money away from gold ETFs and towards bitcoin funds.
A research note issued this week by JPMorgan Chase analysts led by Nikolaos Panigirtzoglou explained that inflation. Instead, the excitement surrounding the first U.S. futures trading exchange-traded fund has already been driving up. The price of bitcoin to all-time highs (ATH).
After just one day of trading, the Proshares Bitcoin Strategy ETF (ticker: BITO) has garnered almost $1 billion in assets under management. On Friday, the second bitcoin derivatives exchange-traded fund (ETF) in the United States opened.
They go on to say that “by itself. The introduction of BITO is unlikely to ignite a new phase of considerably. Additional fresh money into bitcoin,” and they provide the following explanation:
Our research indicates that bitcoin is perceived as an improved inflation hedge than gold. This perception, in turn, has prompted a transition away from gold ETFs and into bitcoin funds, which has occurred since September.
As the experts pointed out, “the initial excitement surrounding BITO may dissipate within a week or two.”
Earlier today, according to information from Bitcoin.com Markets. The price of bitcoin reached an all-time high of $66,899, a new all-time high. It is currently valued at around $61,249 at the time of writing.
This index has climbed by roughly 40 percent. It is since the start of the month and by more than 90 percent since January 1, 2015. When the market expected the authorization of a bitcoin futures exchange-traded fund (ETF) by the Securities & Exchange Board of the United States. The bitcoin price significantly increased in value (SEC).
Not only have JPMorgan analysts clarified that the real driver behind bitcoin’s price increase has been starting to grow inflationary concerns.
But they’ve also mentioned that this has prompted investors to look at investments that, can act as a hedge against this risk, such as gold as well as bitcoin.
The gold standard was formerly seen as an effective inflationary buffer. However, it has been unable to respond effectively over the last week to growing concerns about rising cost pressures on the company.
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