{"id":51566,"date":"2021-10-21T13:45:43","date_gmt":"2021-10-21T10:45:43","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=51566"},"modified":"2025-09-03T00:22:28","modified_gmt":"2025-09-02T21:22:28","slug":"jpmorgan-names-the-main-factor-behind-bitcoins-current-rally","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jpmorgan-names-the-main-factor-behind-bitcoins-current-rally\/","title":{"rendered":"JPMorgan Names the Main Factor Behind Bitcoin’s Current Rally"},"content":{"rendered":"

Inflation fears, not hype around the first Bitcoin futures ETF<\/span>, are driving the leading cryptocurrency to new price highs. JPMorgan analysts share that view, Bloomberg reports.<\/p>\n

On October 19, trading in Bitcoin Strategy ETF<\/a> on the New York Stock Exchange by ProShares began. The SEC<\/span> for the first time approved<\/a> such a bitcoin-futures-based exchange-traded product.<\/p>\n

Trading volume of the fund under the ticker BITO on its debut day reached nearly $1 billion<\/a>. By this metric, it ranked second among all ETFs.<\/p>\n

On October 20, the price of the leading cryptocurrency hit an all-time high<\/a>, surpassing $67,000.<\/p>\n

However, JPMorgan strategists led by Nikolaos Panigirtzoglou argue that BITO’s launch alone is unlikely to trigger a new phase of substantial fresh capital inflows into Bitcoin.<\/p>\n

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“Instead, we believe that the perception of the first cryptocurrency as a better inflation hedge than gold is the primary driver of the current rally, triggering a shift from gold ETFs to Bitcoin funds starting in September,” they said.<\/p>\n<\/blockquote>\n

\"JPMorgan
Data: Bloomberg.<\/figcaption><\/figure>\n
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“This shift will remain intact, sustaining an optimistic Bitcoin price outlook for the end of the year,” added JPMorgan experts.<\/p>\n<\/blockquote>\n

Regarding market enthusiasm for BITO, analysts cited the first Bitcoin ETF in Canada as an example. Launched in February 2021, the product<\/a> from Purpose Investments under the ticker BTCC was warmly received, but interest subsequently cooled.<\/p>\n

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“The initial hype around BITO could disappear within a week,” the experts suggested.<\/p>\n<\/blockquote>\n

According to them, Bitcoin investors have “many options” for investments.<\/p>\n

On October 21, it emerged that the SEC approved<\/a> applications to launch two more Bitcoin futures ETFs \u2014 from VanEck and Valkyrie Investments.<\/p>\n

Earlier, Tudor Investment founder Paul Tudor Jones called Bitcoin a hedge against inflation. The billionaire confirmed his view in an interview with CNBC, noting that Bitcoin currently outperforms gold in this regard.<\/p>\n

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“Clearly there is a place for #crypto<\/a> and clearly it’s winning the race against #gold<\/a> at the moment,” says @ptj_official<\/a> on #bitcoin<\/a>. “I would think that would also be a very good #inflation<\/a> hedge. It would be my preferred one over gold at the moment.” pic.twitter.com\/CWbcSM8Sab<\/a><\/p>\n

\u2014 Squawk Box (@SquawkCNBC) October 20, 2021<\/a><\/p><\/blockquote>\n