JPMorgan’s global investment bank strategist claims that institutional investors cannot take advantage of cryptocurrency as an asset class. “The volatility is too high and there is no intrinsic return that you can target,” he concluded.
JPMorgan on institutional cryptocurrency investing
JPMorgan Asset Management Head of the institutional portfolio strategy Jared Gross We discussed the enthusiasm shown by institutional investors as well as cryptocurrency fans in this asset class. Bloomberg On Friday. The chief investment strategist articulated:
As an asset class, crypto is non-existent for most large institutional investors… The Volatility is too much. The absence of intrinsic returns that you can focus on makes it difficult.
Gross It is also a good idea to add that it is “clear” That Bitcoin It has not been proven to be digital gold or a safe-haven investment as many had anticipated. He continued:
Most Most institutional investors are probably breathing a sigh of relief that they weren’t able to get into that market and won’t soon.
The The crypto market is going through a major decline this year. Federal Reserve The major world central banks raised interest rates in order to combat inflation. There There have been numerous bankruptcies, collapses, and insolvencies in the sector. The most recent was the FTX cryptocurrency exchange.
MeanwhileA number of financial institutions and banks provide crypto products to institutional customers. Investment Giant State StreetFor example, in September It records steady demand from institutional investors for crypto assets. Nasdaq Recently, a crypto unit was created called “Nasdaq Digital Assets,” Indicating increased demand from institutional investors.
FurthermoreA survey was released in November Crypto exchange Coinbase It was shown that institutional investors increased their allocations in the crypto winter. The firm stressed that there was “a positive signal for the acceptance of cryptocurrencies as an asset class.” Financial giants publish a study Fidelity In October Survey results showed that 74% (of the institutional investors surveyed) plan to invest in digital assets.
What What did you think about JPMorgan’s statement about institutional investor enthusiasm for crypto assets Let Please let us know your thoughts in the comments section.
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