A survey conducted by JPMorgan found that only 10 per cent of the institutional investment firms who participated in the survey trade in cryptocurrencies and almost half them have described this emerging digital asset class as “rat poison” or have predicted it to only be a temporary fad.
Only this Tuesday, a five month low was touched by the largest cryptocurrency of the world bitcoin as it further extended its losses emerging from investor concerns of the expansion of a crackdown in China which was initially implemented as a crackdown on mining cryptocurrencies and later included a direction to banks and other financial institutions to not support trading in the digital assets.
On the other hand, the United States Securities and Exchange Commission has said that more regulation around trading in the space needs to be formed and implemented.
The survey showed that out of the companies that did not invest in cryptocurrencies, about 80 per cent were not expecting to be initiating investment or trade in cyptocurrencies. The survey was conducted at JPMorgan’s Macro, Quantitative and Derrivatives conference which was attended by about 3,000 investors from around 1,500 institutions.
About 40 per cent of the investors said they were active in cryptocurrencies when they were asked about their personal investments.
The survey results which were released recently, more than 80 per cent of the investors in the survey also anticipated greater and tougher regulations on this asset class whereas 95 per cent of the investor participants were of the opinion that fraud in the crypto world was “somewhat or very much prevalent”.
Bitcoin has been characterised as “rat poison squared” by the billionaire investor Warren Buffett. That view as shared by at least one third of the investors who participated in the JPMorgan survey. Another 16 per cent thought it was a temporary fad.
The survey also revealed that investors expecting US benchmark stocks index S&P 500 to trade between 4,200 to 4,600 points by the end of 2021 and see a dial back in central bank stimulus and inflation as key market risks. S&P 500 closed at 4,246.44 on Tuesday
(Adapted from LiveMint.com)