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A strategist at global investment bank JP Morgan says cryptocurrencies are virtually non-existent as an asset class for most large institutional investors. It is very difficult because there is no good return, he added.
Jared Gross, head of institutional portfolio strategy at JP Morgan Asset Management, spoke to Bloomberg on Friday about cryptocurrencies and institutional interest in asset classes. A senior investment strategist explains:
As an asset class, cryptocurrencies are virtually nonexistent for most large institutional investors too volatile. It is very difficult because there is no intrinsic return that can be pointed to.
Gross added that it is “obvious” that bitcoin has not been proven to be a form of digital gold or haven asset, as some have hoped. :
Most institutional investors are probably breathing a sigh of relief that they didn’t dive into that market, and probably won’t be doing so any time soon.
The crypto market has dropped significantly this year as the Federal Reserve and other 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.
Meanwhile, more and more banks and financial institutions are offering crypto products and services to institutional investors.investment giant state streetIn September, for example, we see unabated demand for crypto assets from institutional investors. Nasdaq Recently, it established a cryptocurrency division called Nasdaq Digital Assets due to the increased demand among institutional investors.
Furthermore, according to a survey released in November by cryptocurrency exchange Coinbase, institutional investors increased the quota During the crypto winter. The firm emphasized that there are strong signs that cryptocurrencies will be accepted as an asset class.According to his October survey by financial giant Fidelity, 74% of institutional investors surveyed Plan your investment in digital assets.
What are your thoughts on JP Morgan’s strategist’s statement on institutional interest in crypto? Let us know in the comments section below.
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