JPMorgan thinks the ProShares Bitcoin futures ETF launch is unlikely to boost BTC prices.
Bitcoin prices are unlikely to climb as a result of the debut of the ProShares Bitcoin futures exchange-traded fund (ETF), according to US bank JPMorgan. As an alternative, they cited inflation as a significant factor that may have had a role in propelling Bitcoin prices to new all-time highs.
Moreover, according to strategists, the current price movement in Bitcoin was prompted by investors’ abrupt shift away from gold ETFs and into Bitcoin funds.
Investment in Bitcoin Futures ETFs allows investors to monitor the value of Bitcoin futures and trade on standard markets rather than the spot market for the cryptocurrency. These enable traders and investors to obtain exposure to Bitcoin without having to contact cryptocurrency exchanges in order to trade the cryptocurrency.
When compared to gold, bitcoin has witnessed greater advances in the US dollar
The Federal Reserve had already published a number of announcements in which it expressed the view that the present inflation was more of a temporary phase. In addition, the Reserve anticipated that the prices would ultimately decrease; but, given the current status of the economy, which shows no indications of improvement, investors were left with little choice but to look for alternatives that may provide consistent returns.
According to Jerome Powell, Chairman of the Federal Reserve in the United States, the current inflationary scenario is “frustrating,” and the current economic crisis will last until 2022, which is longer than he had anticipated.
Therefore, gold prices took a significant hit, which in turn increased investor interest in Bitcoin, which was gathering steady pace at the time of this article’s publication. “As a result of this, the migration away from gold ETFs towards Bitcoin funds has gained momentum,” according to the research.
Bitcoin prices rocketed beyond $67,000 earlier this week with the introduction of the Proshares Bitcoin Futures ETF, shattering all prior records in the process. A Bitcoin exchange-traded fund that monitors the prices of Bitcoin futures was able to generate more than $1.1 billion in trading activity during its first two days of operation.
