A study by the large American investment bank JPMorgan reveals that a large part of the institutional investment companies actually do not like crypto at all.
“Crypto is rat poison”
Recently, JPMorgan has surveyed a large number of institutional investment firms. This survey focused mainly on the attractiveness of cryptocurrencies as an investment for such firms.
Unfortunately, the majority of such companies were not happy with crypto as an investment. Only 10% of the companies surveyed indicated that they traded or invested in crypto. Half of these companies even called crypto rat poison.
Warren Buffet made headlines some time ago after calling crypto “rat poison squared”. According to the JPMorgan survey, 16% of investment firms agreed with this statement.
In addition, 80% of companies indicated that they have no plans to invest in cryptocurrencies in the near future.
Four in five companies also indicated that they believe that stricter regulation of the crypto markets is just around the corner. Perhaps this can provide a more positive view since at the moment 95% still believe that fraud within the world of crypto is the order of the day.
Hedge funds make a different sound
The major mainstream investment firms are clearly not yet convinced of the value of cryptocurrencies. Hedge funds, on the other hand, are quite enthusiastic. Hedge funds are of course also known for taking a lot more risk than other types of investment companies.
An Intertrust Global survey recently revealed that 98% of hedge fund technical directors expect their hedge funds to have a significant portion of their portfolio in crypto within two years. In fact, one in three hedge funds see crypto as a potential game changer.
The difference in understanding crypto between hedge funds and standard investment firms could hardly be greater. While one camp sees crypto as ‘rat poison’, the other camp is eager to put substantial parts of their portfolio in cryptocurrencies.