This is the real reason that drives Bitcoin to hit ATH, not BTC ETF

Follow news As Bloomberg recently reported, investment banking giant JPMorgan suggested that the non-Bitcoin ETF, launched on the NYSE on Tuesday, propelled the leading cryptocurrency to an all-time high of around $ 67,000.

JPMorgan strategists suspect that the most potential reason for Bitcoin to move to the new ATH is inflation, not the ProShares Bitcoin ETF on October 19th.

Nikolaos Panigirtzoglou and other strategists at the bank wrote that an ETF launch is unlikely to attract much new capital into the leading digital asset. The reason, in their opinion, is because people believe that Bitcoin is a stronger hedge against inflation than gold. You’ve seen cash move from gold ETFs to Bitcoin since early September.

The Bitcoin ETF hype is quickly fading

According to JPMorgan experts, gold has recently lost investor confidence in its ability to withstand inflation and they are increasingly selling gold to buy more bitcoin.

One example of this is the $ 56 billion SPDR Gold Shares ETF (GLD), which has been sold on a massive scale in recent months and lost $ 3.6 billion, according to Bloomberg.

JPMorgan points out that in addition to BITO, investors have a wide range of products to buy – including the Canada Purpose Bitcoin ETF (BTCC). Strategists say BTCC got off to a very good start too, but the hype has since evaporated. Therefore, they assume that after a week of launch, the same can happen to BITO.

BTC wins gold

Recently, billionaire investor Paul Tudor Jones stated that Bitcoin is winning the race against gold as more investors choose Bitcoin as an inflation hedge over gold.

He added that the world is entering a digital age and therefore digital gold is transcending physical gold.

Regarding the ProShares Bitcoin ETF, Tudor Jones said he would rather own physical BTC than buy an ETF that tracks its performance.

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Annie

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