JPMorgan: Cryptocurrencies do not exist for most institutional investors

The representative of one of the largest investment banks JPMorgan, Jared Gross, said that institutional investors will not work with the cryptocurrency market in the near future. Jared Gross, head of institutional strategy at investment bank JPMorgan, said in a podcast that digital currencies as an asset class do not actually exist for most institutional investors.. The reason for this is the high volatility and the lack of internal returns to refer to.. All this makes cryptocurrencies too difficult for investors representing large companies. At the same time, Gross noted that bitcoin (BTC), no matter how many hoped, did not become a digital analogue of gold or an inflation hedge: “Therefore, many institutional investors breathed a sigh of relief and were glad that they had not jumped headlong into this market.. They are probably not going to do this in the near future either, ”Gross said. The podcast discussed that digital currency prices were so high in 2020 and 2021 in part because large traditional finance companies entered the market.. However, this year, due to a number of scandals and bankruptcies in the industry, as well as due to the increase in rates by the US Federal Reserve System (FRS), interest in the market has subsided. Earlier, JPMorgan analysts said that after the collapse of FTX, the crypto industry will change significantly, including due to stricter regulation.