Despite the recent drop in the price of bitcoin (BTC), institutions maintain their positive stance towards the main cryptocurrency on the market. Now, JPMorgan strategists have recommended exposing at least 1% of an investment portfolio to bitcoin, as a way to make a profit with low risk.
The idea of a small exposure to capital is based on mitigating the risks associated with the volatility of the cryptocurrency market. However, the same volatility could be beneficial to profit in this market , in the opinion of the representatives of JPMorgan, cited by Bloomberg.
In a note to their clients, strategists Joyce Chang and Amy Ho said that “in a multi-asset portfolio, investors can probably add up to 1% of their allocation to cryptocurrencies to achieve any efficiency gains in overall returns. adjusted to portfolio risk. ”
On the other hand, Chang and Ho referred to cryptocurrencies as“ investment vehicles. ” For This, they assured that they should not be treated as «financing currencies», unlike fiat money.
«So, when you seek to cover a macro event with a currency, we recommend hedging through financing of currencies such as the yen or the US dollar ”, added the strategists of the financial institution with more than 200 years of experience. and existence.
The recommendation clearly contrasts with the approaches of other institutions. In particular, with the strategy that the business intelligence company MicroStrategy has taken. The company headed by Michael Saylor has adopted an aggressive form of bitcoin accumulation, with investments of up to $ 1 billion in the most recent round of buying BTC.
Bitcoin as competition for gold, according to JPMorgan
The recent recommendation from JPMorgan strategists is in line with the approach that this institution has lately had towards the cryptocurrency created 12 years ago by Satoshi Nakamoto.
As CriptoNoticias has previously reviewed, the organization has manifested itself in a very positive way regarding bitcoin. Not only does it see a potential price above USD 146,000, but the entity has come to consider that BTC represents increasing competition for gold as a store of value mechanism.
This pro-bitcoin stance is relatively recent, after JPMorgan was quite critical of the cryptocurrency. However, as has been happening in the institutional sphere, the firm has been modifying this narrative.
To date, JPMorgan has reached the point of supporting exchanges such as Gemini and Coinbase for their operations with bitcoin, and even have launched their own blockchain with a cryptocurrency that they have already used to finance themselves: JPM Coin.