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Why Institutional Investors Don’t Want Crypto ⋆ ZyCrypto

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MicroStrategy

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  • The heightened volatility in the digital asset class has caused investors to flee, says JPMorgan’s strategist. 
  • 2022 has been a tough year for cryptos because of macroeconomic factors.

JPMorgan’s senior investment strategist said that large individual and institutional investors are not interested in cryptos due to the volatility seen in 2022. Jared Gross told Bloomberg in a podcast that the class of investors was happy that they did not put money in crypto this year and may not do so soon.

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 that you can point to makes it very challenging. Most institutional investors probably are breathing a sigh of relief that they didn’t jump into that market and are probably not going to be doing so anytime soon.” Gross said. 

Towards the end of 2020, cryptocurrencies boomed. The following year, many digital assets surged to their all-time high, including Bitcoin, which topped $68,000. That was not the case in 2022. A high inflation rate, costly borrowing rates, and the collapse of large crypto companies saw the flagship cryptocurrency touch $15,000 in November, a drop of about 77% from the ATH.

Bitcoin Has Never Been A Hedge Against Inflation – Says Gross 

Such heightened volatility cannot qualify Bitcoin as digital gold or as a hedge against inflation – which has never been – according to Gross. He added that the interest in digital assets could have disappeared or was not there initially.

It is not the first time JPM has expressed scepticism against crypto, especially in the current bear cycle. The investment bank’s CEO Jamie Dimon has remarked in the past that he was not a supporter of bitcoin, adding that he “personally (thought) that bitcoin (was) worthless.”

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On the contrary, the largest US bank by assets opened access to its wealth management clients for six crypto funds in 2021. The multinational is also involved in, among other funds, Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust. Regarding the matter, Dimon said that the decision is investor-driven.


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BitPay Announces Partnership With MoonPay – Bitcoin Magazine

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Bitcoin And Artificial Intelligence Frees Your Time - Bitcoin Magazine


BitPay and MoonPay, leading bitcoin and cryptocurrency payments infrastructure providers, have partnered “to provide BitPay users with significantly increased ways to buy cryptocurrency instantly, and at great rates.”

“BitPay’s unique marketplace experience also presents multiple rates for buyers, ensuring they receive the best possible price for their cryptocurrency purchases,” the press release states. “Additional benefits of the integration include fast delivery to any owned wallet address, as well as the ability for buyers to pay with their preferred method, including credit card, debit card, Apple Pay, Google Pay or a variety of local bank transfer methods.”


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Why Real Regulatory Change In Crypto Has Not Happened

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Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


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South Korea to deploy cryptocurrency tracking system in 2023

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South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


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