Bitcoin reached its all-time high price level after the launch of ProShares’ BTC Strategy exchange-traded fund (BITO) on Tuesday. However, JPMorgan Chase analysts believe the key reason behind the price surge is investor unease over rising inflation.

JPMorgan analysts said that the BITO launch, which saw the highest-ever first-day natural volume for an ETF, is “not likely to trigger a new phase of significantly more fresh capital entering Bitcoin.”

Instead, JPMorgan feels that as gold was unable to answer concerns over increasing inflation in the last few weeks, Bitcoin’s role as a better hedge against inflation for investors is the primary reason for the current uptick. The group highlighted that the change from gold ETFs into Bitcoin funds has gained momentum since September and “supports a bullish outlook for Bitcoin into year-end.”

The JPMorgan analysts exhibited dwindling interest following the first week after Canada’s Purpose Bitcoin ETF (BTCC) launch. They think the initial buzz around BITO might likewise fade after a week.

As the first Bitcoin futures-linked ETF in the United States, ProShares’ Bitcoin Strategy ETF began exchanging Tuesday on the NY Stock Exchange at an opening rate of $40 per share. It allows investors direct exposure to cryptocurrency futures in a regulated market.

JPMorgan’s remarks resemble others in traditional finance. Carl Icahn, a billionaire investor, praised Bitcoin as an excellent hedge against inflation as the impending market crisis looms on the horizon.

Bill Winters, CEO of British bank Standard Chartered, noted the close of an extended period of low inflation, saying that “it’s perfectly reasonable for people to want an alternative to fiat currency.”

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