JPMorgan: Crypto is a Non-Existing Asset Class for Most Large Institutional Investors – Featured Bitcoin News

A strategist at global investment bank JPMorgan says crypto is effectively non-existent as an asset class for most large institutional investors. “The volatility is too high, the lack of an intrinsic return that you can report makes it very difficult,” he added.

JPMorgan on institutional investing in crypto

JPMorgan Asset Management’s Head of Institutional Portfolio Strategy Jared Gross discussed crypto and institutional investor interest in the asset class on Bloomberg on Friday. The Senior Investment Strategist described:

As an asset class, crypto is effectively non-existent for most large institutional investors… The volatility is too high, the lack of an intrinsic return that you can point to makes it very difficult.

Gross added that it’s “obvious” bitcoin hasn’t turned out to be a form of digital gold or a safe-haven asset as some had hoped. He continued:

Most institutional investors are probably breathing a sigh of relief that they haven’t jumped into this market and probably won’t be doing so anytime soon.

The crypto market has shrunk significantly this year as the Federal Reserve and other major central banks around the world have raised interest rates to fight inflation. There have also been meltdowns and bankruptcies in the industry, including the most recent fallout from crypto exchange FTX.

Meanwhile, a growing number of banks and financial institutions are offering crypto products and services to their institutional clients. investment giant State Streetfor example, said in September that he saw steady demand for crypto assets from institutional investors. Nasdaq recently created a crypto unit called “Nasdaq Digital Assets,” citing increased demand among institutional investors.

In addition, a survey published in November by crypto exchange Coinbase showed that institutional investors increased their allowances during the crypto winter. The firm pointed out that there is “a strong signal of the acceptance of crypto as an asset class”. A study published by financial giant Fidelity in October showed that 74% of institutional investors surveyed are considering investing in digital assets.

What do you think of the JPMorgan strategist’s statement regarding institutional investor interest in crypto assets? Let us know in the comments section below.

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