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FILE PHOTO: Exchange rates and logos for Bitcoin (BTH), Ether (ETH), Litecoin (LTC), and Monero (XMR) can be seen on the display of a service provider’s cryptocurrency ATM Bity blockchain payment card at Satochi bitcoin’s house and blockchain store in Zurich, Switzerland, March 4, 2021. REUTERS / Arnd Wiegmann
LONDON (Reuters) – Only 10% of institutional investment firms surveyed by JPMorgan trade cryptocurrencies, with nearly half calling the emerging asset class a rat poison or predicting it would be a temporary fad.
Bitcoin, the world’s largest cryptocurrency, fell to its lowest level in five months on Tuesday, extending China’s losses and stepping up the crackdown on mining and cryptocurrency trading. The United States Securities and Exchange Commission has said it would like to see more regulation regarding trading in the space.
Bitcoin was up 5% around $ 34,000 at 10:45 a.m. GMT on Wednesday.
Of the companies that did not invest, 80% did not expect to start investing or trading in cryptocurrencies, according to the survey conducted at the JPMorgans Macro, Quantitative and Derrivatives conference, in which some 3,000 attended. investors of around 1,500 institutions.
However, when asked about their personal investments, 40% of investors said they were active in cryptocurrencies.
Four-fifths of investors also expected regulators to get tougher on the asset class, while 95% thought fraud in the crypto world was enough or very. widespread, according to the survey released late Tuesday.
Billionaire investor Warren Buffett has in the past referred to bitcoin as a squared rat poison. A third of the respondents to the JPM survey share this opinion. Another 16% thought it was a temporary fad.
In other findings, investors said they expected the S&P 500 U.S. benchmark stock index to trade between 4,200 and 4,600 points by the end of 2021 and consider a return of central bank stimulus and inflation as key market risks. The S&P 500 closed at 4,246.44 on Tuesday.
Reporting by Thyagaraju Adinarayan; Editing by Karin Strohecker and Alison Williams
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