The leading bank in the United States JP Morgan Chase & Co. (NYSE: JPM) said in a notice to its clients that it looks Bitcoin(CRYPTO: BTC) to replacement gold as a financial investment.
See also: IS BITCOIN A GOOD INVESTMENT?
What happened: According to a Fortune report on Friday, a JPMorgan note on Thursday said “institutional investors are returning to Bitcoin and perhaps viewing it as better inflation protection than gold.”
While correcting from the highs it had seen earlier this year, Bitcoin recently worked its way back above $ 55,500, with alleged institutional help, while gold fell 7.3% last month.
JPMorgan analysts also point out that Bitcoin’s great volatility doesn’t seem to bother investors, and institutional interest is further underscored by this year’s events like the listing of the crypto exchange Coinbase Inc. (NASDAQ: COIN) to achieve astronomical capital inflows without difficulty.
Additionally, in its first quarter report, Coinbase found that of the $ 335 billion in trades the company hosted that quarter, $ 215 billion came from more than 8,000 institutional investors.
The JPMorgan report suggests that “the resurgence of inflation concerns has renewed investors’ interest in using Bitcoin as an inflation hedge.” Dawn Fitzpatrick, head of George Soros’ fund – the man who “broke the pound” – also announced at a Bloomberg event that the fund has some coins but “not many.”
Investing star Kevin O’Leary also announced earlier this week that his crypto holdings have exceeded the funds he has set aside for gold.
JPMorgan suggests that second tier payment solutions have given the bitcoin bulls new strength. More specifically, the rise of the Lightning Network scalability solution and other solutions was “aided by the introduction of Bitcoin in El Salvador”.