According to a JPMorgan strategist, crypto assets are still virtually non-existent for the majority of the institutional investment world.
According to JPMorgan’s head of institutional portfolio strategy, Jared Gross, in an episode of Bloomberg’s What Goes Up podcast, crypto is too difficult to fit into institutional portfolios.
“As an asset class, crypto is effectively non-existent for most large institutional investors. The volatility is too high, and the lack of an intrinsic return to point to makes it difficult.”
Gross also claims that, despite Bitcoin bulls’ desire for BTC to become a form of digital gold, this has not occurred.
“Most institutional investors are probably breathing a sigh of relief that they did not rush into that market and are unlikely to do so anytime soon.”
In contrast to Gross, Bloomberg’s chief commodity strategist Mike McGlone believes that institutions will be risky if they do not have at least some exposure to the crypto markets in the near future.
“So to me, the risk is going forward that I think for most major institutions on a five-year basis at least, the risk is not being somewhat allocated to this space. I’m not talking about the 20,000 highly speculative cryptos listed on CoinMarketCap. I’m talking about the top 10, the top 100, and an index that tracks them. Definitely Bitcoin and Ethereum. Yes, they could fall, but to me, an index that tracks those will just keep doing what it’s doing, and these types of things frequently carve that foundation.
The important thing to remember right now is that the Fed is still pounding hard, and all risk assets are falling. Cryptocurrencies were the fastest on the way up and the fastest on the way down.”