The JP Morgan executive said that cryptocurrencies are a non-existent asset class for the vast majority of large institutional investors due to volatility and insufficient internal returns.
As told by Jared Gross, strategist and investment banker at JP Morgan BloombergThe big players in the financial institutional investment landscape are keeping the crypto ecosystem afloat:
“As an asset class, crypto is effectively a nonentity for most large institutional investors; The volatility is very high, and the lack of an intrinsic return that you can point to makes it very challenging.”
Jared Gross, JP Morgan Strategist
Gross believes that bitcoin has yet to become a haven asset or a form of digital gold. He said that there are many institutional investors heave a sigh of relief They didn’t jump into that industry.
JPMorgan’s Controversial Stance on Crypto
JPMorgan Chase & Co., one of the world’s largest banks, has had a somewhat mixed stance on cryptocurrencies and blockchain technology.
On the one hand, the bank has invested in and developed its own blockchain-based payment system called Quorum. It has been involved in several projects using blockchain technology, including the development of a digital currency. jpm coin, In addition, the bank has also explored the use of cryptocurrencies for its own operations, such as using bitcoin to settle foreign exchange trades.
At the same time, the bank expressed skepticism about cryptocurrencies in general. Its CEO, Jamie Dimon, famously called bitcoin a “fraud” In 2017. In recent years, the bank has also warned its customers about the risks associated with investing in cryptocurrencies, saying that they are highly volatile and not backed by any tangible asset.
Overall, it appears that JP Morgan is interested in the potential applications of blockchain technology, but is more cautious about using cryptocurrencies as an investment or as a medium of exchange.
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