A strategist at global investment bank JPMorgan , says cryptocurrencies are an effective nonexistent asset class for most large institutional investors. “There is too much volatility. It is very difficult because there is no intrinsic return to point to,” he added.
JP Morgan on Institutional Crypto Investing
Jared Gross, Head of Institutional Portfolio Strategy at JP Morgan Asset Management, told Bloomberg on Friday, We talked about the interest of cryptocurrency investors and institutional investors in this asset class. A senior investment strategist explained:
As an asset class, cryptocurrencies are virtually non-existent for most large institutional investors… too volatile. challenge.
Gross said it was “obvious” that bitcoin has not been proven to be a digital form of gold or heavenly assets, as some had hoped. added that it is. He continued:
Most institutional investors are probably breathing a sigh of relief at not entering that market.
The cryptocurrency market has fallen significantly this year as the Federal Reserve and major central banks around the world have raised interest rates to combat inflation. There have also been collapses and bankruptcies within the sector, including the recent fallout of crypto exchange FTX.
We provide goods and services. For example, investment giant State Street said in September that it saw unabated demand for crypto assets from institutional investors. Nasdaq recently launched a cryptocurrency division called “Nasdaq Digital Assets,” citing growing demand among institutional investors.
Furthermore, according to a November study by cryptocurrency exchange Coinbase, institutional investors increased their investments during the cryptocurrency winter. The firm emphasized that there are “strong signs that cryptocurrencies will be accepted as an asset class.” A survey released by financial giant Fidelity in October showed that 74% of the institutional investors surveyed were planning to invest in digital assets.
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