Experts at the leading financial institution JPMorgan say that Bitcoin's surge is connected with concerns over inflation and not ETFs.
As reported by Bloomberg, Managing Director at JP Morgan Nikolaos Panigirtzoglou and other strategists are of the opinion that the release of ProShare's Bitcoin ETF can hardly be considered a stage that causes more fresh capital entering BTC. The team believes Bitcoin raised as it's viewed as an inflation hedge. There is a money flow out of gold ETFs into BTC funds since last month.
Previously, JPMorgan issued a note, stating that demand in Bitcoin increases as gold behaves more like a real rate proxy rather than means against inflation.
The institution mentioned that Bitcoin offers investors various choices. Commenting on the success of the Bitcoin ETF launched by ProShares, which saw over $1 B of trading on the day of launch, the experts said the hype could calm down in a week as it was in the case of Canada's Purpose Bitcoin ETF.
Bitcoin hit a new all-time high of $66.930 on October 20. Currently, the coin trades at over $65.900.