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78% of institutional investors are not planning on investing in cryptocurrencies, though a majority say crypto is 'here to stay,' JPMorgan survey finds

Markets Insider
Markets Insider
 2021-03-03

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  • A JPMorgan survey of 3,400 institutional investors shows a majority do not plan to invest in or trade cryptocurrencies.
  • However, 58% of investors surveyed said cryptocurrencies are "here to stay."
  • The survey is the latest look into institutional sentiment on cryptos as more firms enter into the space.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell .

An overwhelming majority of institutional investors surveyed by JPMorgan said they do not plan to start investing or trading cryptocurrencies, though 58% said crypto is "here to stay."

In a survey of roughly 3,400 investors representing 1,500 institutions around the work, 11% of investors said their firm either trades or invests in crypto, while 89% said their firm doesn't.

Out of the investors who answered "no," 78% of investors said it's "not likely" their firm will trade or invest in crypto, while 22% answered "likely."

The survey sheds a light on the state of institutional investor interest in cryptocurrencies . While bitcoin's parabolic rise has garnered the attention of institutional and retail investors alike, the institutional community remains somewhat divided on the future of crypto.

When asked: "What is your opinion on Crypto?" 14% answered "probably rat position squared (something to avoid,)" while 7% said it "will become one of the most important assets." 58% of investors said it's "here to stay," and 21% answered that crypto is just a "temporary fad."

Almost all investors (98%) said they believe fraud in the crypto world is "somewhat" or "very much prevalent."

Multiple well-known Wall Street behemoths are taking in interest in cryptocurrencies and bitcoin. Most recently, a unit of Morgan Stanley said it's exploring whether to invest in cryptocurrencies, according to Bloomberg . Morgan Stanley also has a 10.9% stake in MicroStrategy, which gives the bank indirect exposure to 7,681 bitcoin.

BlackRock has authorized two of its funds to invest in bitcoin futures, while JPMorgan strategists have a theoretical price target of $146,000 for bitcoin.

Read the original article on Business Insider

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