Bitcoin (BTC) bankrupt its all-fourth dimension high price level post-obit the launch of ProShares' Bitcoin Strategy commutation-traded fund (ETF), BITO, on Tuesday, just JPMorgan Hunt strategists believe the key driver backside the price jump is investor business over inflation.

The BITO launch, which saw the highest-always offset-twenty-four hour period natural volume for an ETF, is "unlikely to trigger a new phase of significantly more than fresh capital entering Bitcoin," JPMorgan strategists said in a note.

Instead, JPMorgan believes that equally gold failed to respond to concerns over rising cost pressures in the terminal couple of weeks, Bitcoin's renewed function as a amend hedge against inflation in the eyes of investors is the main reason for the current balderdash run. The team highlighted that the shift away from gilded ETFs into Bitcoin funds has bee gathering speed since September and "supports a bullish outlook for Bitcoin into twelvemonth-cease."

The JPMorgan strategists exemplified the waning involvement after the first week following the launch of the Purpose Bitcoin ETF (BTCC) in Canada, claiming that the initial hype surrounding BITO could also fade after a week.

Equally the first Bitcoin futures-linked ETF in the United States, ProShares' Bitcoin Strategy ETF started trading on the New York Stock Exchange on Tuesday at an opening price of $40 per share. It enables investors to take direct exposure to cryptocurrency futures in a regulated market.

Related: Bitcoin futures ETF hits $1B AUM in a record-breaking two days

JPMorgan'south comments echo others in traditional finance. Billionaire investor Carl Icahn praised Bitcoin as a great hedge against inflation as the next market crisis looms on the horizon.

Bill Winters, CEO of British bank Standard Chartered, recently noted the passing of a long period of depression inflation, adding that "it'south perfectly reasonable for people to want an alternative to fiat currency."