Strategists at JPMorgan have deemed inflation as the main driver that induced Bitcoin prices to shoot up to a staggering $67,000 instead of Bitcoin Futures ETFs.
US bank JPMorgan says the launch of the ProShares Bitcoin futures ETF is unlikely to trigger a rise in the prices of Bitcoin. They instead stated inflation as a key reason that may have helped propel Bitcoin prices to soar to new all-time highs.
Strategists also claim that the current price shift in Bitcoin was triggered due to investors’ sudden transition towards Bitcoin funds instead of Gold ETFs.
Bitcoin Futures ETFs allow investors to track the value of Bitcoin futures and trade on traditional markets rather than spot assets. These allow traders and investors to gain exposure to Bitcoin without having to interact with exchanges to trade crypto.
Bitcoin has seen better USD gains compared to gold
The Federal Reserve had earlier issued multiple statements that had regarded the current inflation as more of a transitory phase. The Reserve had also expected that the prices would eventually decline, but considering the current economic state that shows no signs of recovery, the investors were left with no other choice but to seek alternatives that can guarantee stable returns.
U.S. Federal Reserve Chairman Jerome Powell had also stated in September that the prevailing inflationary situation is indeed “frustrating” and had predicted that the existing economic crisis will continue till 2022 which is longer than he had initially anticipated.
As a result, the prices of gold had suffered a major blow that stimulated investors’ interest in Bitcoin which was gaining steady momentum at the time Due to this, “the shift away from gold ETFs into Bitcoin funds have gathered pace,” the report says.
Bitcoin has broken all previously set records as its prices soared past $67,000 earlier this week after the launch of Proshares Bitcoin Futures ETF. The exchange-traded fund—one that tracks the prices of Bitcoin futures—managed to cross $1.1 billion in trading volume within the first two days of trading.