JPMorgan report endorses 1% allocation to Bitcoin as a hedge
Bitcoin would serve as a hedge against fluctuations in traditional assets. Strategists at Wall Street banking giant JPMorgan have suggested that a one percent portfolio allocation to Bitcoin would serve as a hedge against fluctuations in traditional asset classes such as stocks, bonds, and commodities.A small percentage allocation was advised to mitigate the risk of any large downturns in the digital asset’s value. Bitcoin has declined 20% since its all-time high of over $58,000 on Feb. 21 but it is up 60% since the beginning of this year.According to Bloomberg, JPM strategists Joyce Chang....
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According to JPMorgan this week’s rally has been driven by institutional investors hedging against inflation with Bitcoin. Bitcoin (BTC) has led a 35% rally this week by soaring far above the $50,000 resistance level and restoring a $1 trillion market capitalization to the asset. According to a note shared by JPMorgan with clients on Thursday, the recent increase in price for BTC was predominantly attributed to institutional investors looking for a hedge to inflation. "The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation....
Global investment bank JPMorgan says institutional investors are returning to bitcoin, seeing the cryptocurrency as a better hedge than gold. The firm’s analysts describe three key drivers boosting the price of bitcoin in recent weeks, including assurances that U.S. policymakers will not ban cryptocurrencies.
JPMorgan Sees Renewed Interest in Bitcoin
JPMorgan published a research note Thursday stating that institutional investors are returning to bitcoin. Citing the trend of money flowing out of gold into BTC, the firm’s analysts wrote:
Institutional investors....
A CoinDesk report revealed that Bank of America had reportedly started offering crypto trading to some select customers. The report stated that Bank of America’s prime brokerage unit had begun the clearing and settlement of crypto exchange-traded products (ETPs). The ETPs are currently being provided to hedge funds in Europe, said CoinDesk. According to three […]
JPMorgan has released a report on the futures and derivatives market around bitcoin, providing insight and bullish sentiment.
A portfolio manager and member of Blackrock’s Global Allocation Fund says gold is now a less effective hedge against inflation as well as moves in other assets such as stocks. In comments that appear to undercut the precious metal’s renowned status, Russ Koesterich claims that “gold’s ability to hedge against inflation has been somewhat exaggerated.” Gold Less Reliable Across Most Investment Horizons While Koesterich is still cognizant of gold’s status as a “reasonable store of value over the very long-term,” he does however opine that....