© Reuters.
Investing.com – Institutional investors are feeling relieved to have stayed away from crypto, a JP Morgan analyst has said. Despite a massive bull market in 2020 and 2021, institutions would have stayed away from crypto. This is what the bank recently argued, indicating that the interest of these investors for the asset class is “effectively non-existent.”
The cryptocurrency market saw strong gains during 2020 and 2021. The , for example, rose from under $10,000 to over $65,000 in that time frame.
During this cycle, many large individual investors, as well as institutions, would have jumped on the bandwagon. However, JP Morgan argues that this interest either died out or was never very relevant.
“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 difficult. Most institutional investors are probably relieved that they haven’t entered this market and probably won’t be doing so anytime soon.”
Indeed, the crypto market has been falling steadily since November 2021 as investor confidence was undermined first by rising rates and then by various scandals and bankruptcies in the sector.