JPMorgan strategist says cryptocurrencies are ‘non-existent’ in institutional investors’ portfolios: Report

A strategist at banking giant JPMorgan reportedly says that crypto assets are still virtually non-existent for most of the institutional investment world.

In an episode of Bloomberg’s What Goes Up podcast, Jared Gross, head of institutional portfolio strategy at JPMorgan, says that cryptocurrencies are too difficult to fit into institutional portfolios.

“As an asset class, cryptocurrencies are effectively non-existent for most large institutional investors. The volatility is too high, the lack of an intrinsic return that you can pinpoint makes it very challenging.”

Gross also says that while Bitcoin bulls are aiming for BTC to become a form of digital gold, it clearly hasn’t happened.

“Most institutional investors are probably breathing a sigh of relief that they didn’t get into that market and probably won’t be doing it anytime soon.”

Contrary to what Gross claims, Mike McGlone, chief commodity strategist at Bloomberg, says that in the near future it will be risky for institutions not to have at least some allocation in the cryptocurrency markets.

“So for me, risk is going forward which I think for most major institutions on at least a five-year basis, risk isn’t sort of being assigned to this space. And I don’t mean the 20,000 highly speculative cryptocurrencies you can find on CoinMarketCap. I mean top 10, top 100, an index that tracks those. So definitely Bitcoin, Ethereum. Yes, they might go down, but to me, an index that tracks those will continue to do what it’s doing, and this type of thing often carves that foundation.

The key thing to remember right now is that the Fed is still pounding, all risk assets are going down. Cryptocurrencies have been the fastest uphill and fastest downhill.”

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Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and that any losses you may incur are your own responsibility. The Daily Hodl does not advise the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.

Presentation image: Shutterstock/Warm_Tail

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