Big institutional investors are still largely staying away from the crypto market, as the asset class’ volatility poses a challenge to money managers, Jared Gross, head of institutional portfolio strategy at JPMorgan Asset Management, told Bloomberg.
“As an asset class, crypto is effectively nonexistent for most large institutional investors,” Gross noted, explaining that “the volatility is too high, the lack of an intrinsic return that you can point to makes it very challenging.”
As of this writing, Bitcoin has fallen from $47,700 in January to below $17,000 by December’s end, while Ether (ETH) has fallen from $3,700 to $1,200 in the same period.
Although cryptocurrency can still be left out of many institutional portfolios, large financial institutions are increasingly embracing it.
In October, the oldest American bank, BNY Mellon, announced it would safeguard Ether and Bitcoin for select institutional clients.
The figure has risen dramatically since before 2020 when it was only around 3%.
Source: Cointelegraph