Crypto is ‘effectively nonexistent’ for big institutions, JPMorgan’s Gross says

Money managers who have avoided the many ups and downs of cryptocurrencies may be feeling relieved for having done so, according to a senior investment strategist at JPMorgan Asset Management.

“As an asset class, crypto is effectively nonexistent for most large institutional investors,” Jared Gross, head of institutional portfolio strategy at the bank, said on this week’s episode of Bloomberg’s “What Goes Up” podcast. “The volatility is too high, the lack of an intrinsic return that yo ..

Crypto prices rallied in 2020 and 2021, boosted in part by a number of traditional finance players getting into the space or at least voicing support for it. This was an important development for crypto enthusiasts, who saw that type of embrace as giving credence to the nascent industry.

But digital assets have suffered mightily this year as the Federal Reserve and other major central banks around the world have raised interest rates to fight historic inflation.