Senior JPMorgan Strategist said Crypto Is Unattractive to Institutions
Institutional investors are happy they avoided cryptocurrencies, according to Jared Gross.
Despite the big bull market in 2020 and 2021, institutions have stayed on the sidelines of the cryptocurrency industry, to their relief.
According to a recent argument by a senior investment strategist at JPMorgan, such investors’ interest in the asset class is “almost nonexistent.”
The most prominent bull run in the cryptocurrency market began around the end of 2021 and lasted for almost a year, with values reaching all-time highs. Bitcoin, for example, increased from less than $10,000 to $69,000 within that time period, becoming a trillion-dollar asset.
During this cycle, there have been several claims that significant individual investors, as well as institutions, like MassMutual, One River, and others, are joining the bandwagon.
The senior investment analyst at JPM, Jared Gross, feels that this interest has either vanished or was never there. He attributed it to the increased volatility and stated that the majority of institutions are pleased that they missed out on last year’s surge because of the events of 2022 and the large price falls.
“As an asset class, cryptocurrencies are almost nonexistent for the majority of big institutional investors. The volatility is excessive, and the absence of an intrinsic return makes it very difficult. During a podcast with Bloomberg, he remarked, “Most institutional investors are probably heaving a sigh of relief that they didn’t rush into that market, nor are they likely to do so in the near future.”
Notably, JPM has long had a contentious relationship with the cryptocurrency business. In reality, it seems to utilize market cycles to boost the market, as was the case after MassMutual’s acquisition, and negative markets to forecast further worse outcomes.