According to Jared Gross, institutions are relieved that they avoided crypto.
It is a relief to institutions that they remain on the sidelines despite the massive bull market in 2020 and 2021.
A JPMorgan senior investment strategist made this argument recently, claiming that these investors’ interest in the asset class is “essentially nonexistent.”
- During the bull run in the cryptocurrency market that started at the end of 2020, prices soared to new highs. In that timeframe, Bitcoin went from under $10,000 to $69,000, becoming a trillion-dollar asset.
- It has been reported multiple times that large individual investors, as well as institutions, such as MassMutual and One River, are joining the bandwagon.
- Jared Gross, JPM’s senior investment analyst, believes this interest has either disappeared or never existed.
- Due to the massive price declines and everything that happened in 2022, he blamed it on the increased volatility.
‘‘In terms of asset classes, crypto is virtually unheard of among large institutions. It is very challenging due to the high volatility and the lack of an intrinsic return. I think most institutional investors are relieved they didn’t jump into that market and won’t be doing so any time soon.” – he said on a Bloomberg podcast.’’
- Historically, JPMorgan has had a controversial relationship with the crypto industry. It almost seems like it uses bull markets to boost the market, such as MassMutual’s purchase, and bear cycles to anticipate even gloomier developments.