JPMorgan Chase (NYSE: $JPM) says that steady outflows from Bitcoin (CRYPTO: $BTC) exchange-traded funds point to a “cooling” debasement trade among investors.
The debasement trade refers to investors buying assets such as Bitcoin and gold as hedges against geopolitical instability, currency weakness, and inflation.
Bitcoin and gold ETFs have seen large outflows in recent weeks amid a retreat by investors from the debasement trade and as they anticipate an Iran-U.S. peace deal.
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JPMorgan Chase, the word’s largest bank, says the same trend is visible in futures markets, where institutional investors appear to have reduced exposure to Bitcoin in recent weeks.
BlackRock’s (NYSE: $BLK) iShares Bitcoin Trust ETF (NASDAQ: $IBIT) recorded a one-day outflow of $527.8 million U.S. on May 27, its second-largest daily outflow ever.
Overall, about a dozen U.S. spot Bitcoin ETFs recorded $733.4 million U.S. in net outflows on May 27, marking their largest daily outflow since Jan. 29 of this year, according to market data.
Bitcoin is currently trading at $73,200 U.S., down nearly 3% over the past 24 hours, and down from a recent peak of $82,000 U.S.
JPMorgan says the weakness is largely due to investors looking past the war in Iran and pricing in a lasting peace deal between the U.S. and the Iranian regime.
JPM stock has risen 13% over the last year to trade at $297.54 U.S. per share.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
