JPMorgan: Big companies are glad they didn’t buy cryptocurrency last year

Financial asset managers who have not succumbed to the cryptocurrency fever are now very happy about their prudence. They avoided the problems associated with excessive market volatility.

Cryptocurrencies are not suitable for institutional strategies, said Jared Gross, head of institutional portfolio strategy at JPMorgan. According to him, it is difficult for investors to approach them due to high volatility and lack of real intrinsic value.

In the latest episode of the Bloomberg What Goes Up podcast, Gross noted that hopes for bitcoin as a digital gold and a safe-haven asset in difficult times have not been realized. «Most institutional investors probably breathed a sigh of relief: they didn’t get into this market and most likely won’t do so anytime soon,» he added.

Not everyone shares the pessimistic view of JPMorgan’s Gross. Earlier, the Coinbase crypto exchange published the results of a study that says that 62% of institutional investors increased their investments in cryptocurrencies over the past year, despite the bear market.

Moreover, according to BNY Mellon, 70% of institutional investors are ready to increase investments in cryptocurrencies as soon as more services for storing such assets appear.