Institutional investors are reported to have fueled the Bitcoin bull market, which began earlier this year, and ended after hitting an all-time high of $64,500. As per a JPMorgan poll, nevertheless, these investors aren’t as interested in Bitcoin as some headlines have suggested.
According to the poll, 49% of respondents feel BTC is a pipe dream or even worse. One-third of those polled sided with BTC naysayer Warren Buffett who called the numero uno cryptocurrency as rat poison.
Hedge funds and family offices, as well as billionaires and multinational corporations interested in diversifying their portfolio, have all purchased Bitcoin this year. Nevertheless, according to JPMorgan’s study, these investors’ enthusiasm may not be as prevalent as previously assumed.
The poll was performed during the American banks 24th Macro, Quantitative, and Derivatives Conference.
“Investors’ views on cryptocurrency’s prospects are extremely divided,” two of the bank’s senior analysts, Dubravko Lakos-Bujas and Marko Kolanovic, inferred from the data.
In May 2018, Warren Buffett, probably the world’s most respected investor — and certainly the wealthiest – dubbed Bitcoin “rat poison cubed.” He then went on to say, “Bitcoin has no distinctive value whatsoever. It doesn’t do anything… Fundamentally, it’s conceit.” Buffett’s right-hand guy, Charlie Munger, is also anti-Bitcoin.
A total of 3,000 top professional investors from 1,500 institutions took part in the JPMorgan poll. While 50 % of the respondents were anti-Bitcoin, 42% believe it will be around for a long time. 9% of them believe Bitcoin will become a significant financial asset in the future. Eighty percent of investors who haven’t tried their hand at BTC don’t plan to do so in the future. However, 40% of people have bought cryptocurrencies on a personal level.
The main source of anxiety for these investors is laws. Considering how rigorous authorities like the SEC are on professional investors, this is logical. Eighty percent think that regulators will tighten their stance on cryptocurrencies. The one point on which virtually all of the investors appeared to concur is that Bitcoin criminality is a problem. According to the poll, 95% of them feel that fraud is rampant in the crypto realm.
JPMorgan has been the purveyor of some of the most pessimistic crypto forecasts and analysis. The biggest bank in the United States is forecasting a $25,000 price target for Bitcoin. The negative prognosis was attributed to the unleashing of Grayscale’s GBTC shares. Earlier in June, JPMorgan also dispelled the idea that institutional investors were purchasing the drop.
