US banking giant JPMorgan experts believe that Bitcoin’s all-time high has nothing to do with the Bitcoin ETF.
According to a recent Bloomberg article, investment banking giant JPMorgan thinks it wasn’t the Bitcoin ETF with a BITO ticker that launched on the NYSE on Tuesday that pushed the leading cryptocurrency to an all-time high.
They Think The Reason Is Inflation
JPMorgan strategists think the most likely reason for Bitcoin’s all-time high on Wednesday is inflation, rather than the Bitcoin ETF (BITO) that started trading on the NYSE on Oct. This means that BTC has really risen.
Nikolaos Panigirtzoglou and other strategists of the bank wrote that the launch of an ETF is unlikely to attract much new capital to the leading digital asset. According to them, this is because people believe that Bitcoin offers stronger protection against inflation than gold. Transitions from gold ETFs to Bitcoin have been tracked since the beginning of September. Investors are switching from gold to Bitcoin.
According to JPMorgan experts, gold has been losing confidence in investors’ ability to withstand inflation lately, and people are selling gold to buy more Bitcoin.
An example is the SPDR Gold Stock ETF, which has faced massive withdrawals over the past few months and has already lost $3.6 billion, according to data from Bloomberg.
Bitcoin Wins Against Gold
However, billionaire investor Paul Tudor Jones stated that Bitcoin has won the race against gold because more investors are choosing BTC to hedge against inflation risk over gold. According to him, the world is moving into a digital phase and therefore digital gold is winning over the physical one.