QUICK TAKE:
- JPMorgan’s Portfolio Manager delivers scathing remarks on Cryptocurrencies’ asset value.
- The investment bank withdraws its holdings in the Cryptocurrency industry.
The New York-based investment bank, JPMorgan no longer wishes to keep its cryptocurrency investments. Simple reason: the sector has been on a downward spiral since 2021, a trend that even took a turn for the worse lately.
Due to the recent implosions within FTX and several other frontline Crypto exchanges, JPMorgan harped on the need for a regulatory mechanism to be instituted within the decentralized digital currency market, to reinforce customers’ confidence and assure of the safety of their assets. Shortly after, the megabank and financial services provider adopted a different approach when its Portfolio Strategy’s Head, Jared Gross made a depressing comment about how cryptocurrency asset claims for large business establishments were unreal. Based on this, JPMorgan announced that it leaving the industry, thereby joining the likes of Tesla which at some point, withdrew their stocks from the Crypto market.
Seeing From a Pessimistic Angle
The sudden change in direction by one of the main proponents of Cryptocurrencies strengthened the doubts of some other big players, who had never endorsed that branch of business as a viable investment channel from the start. The stability of a product and its accompanying services, as well as the longevity of such an enterprise, are part of the key elements that must be considered before some investors will commit their patronage to it. Doing due diligence will convince the prospective stakeholder plus provide a forecast from field experts and determine also if the relevant legislation has been enacted.
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