Crypto is ‘rat death,’ third of major investment firms tell JPM

LONDON, June 23 (Reuters) – Just 10% of institutional investment firms surveyed by JPMorgan trade cryptocurrencies, with nearly half calling the emerging asset class a “rat’s death” or predicting that it will would act in a temporary fashion.

Bitcoin, the world’s largest cryptocurrency, fell to its lowest level in five months on Tuesday, extending losses from China’s growing crackdown on cryptocurrency mining and trading. The US Securities and Exchange Commission has said it would like to see more regulation around trading in the space.

Bitcoin was up 5% around $34,000 at 10:45 GMT on Wednesday.

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Among companies that did not invest, 80% did not expect to start investing or trading cryptocurrencies, according to the survey conducted at JPMorgan’s Macro, Quantitative and Derivatives conference, which was attended by some 3,000 investors from 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 toughen up the asset class, while 95% thought fraud in the crypto world was “somewhat or very prevalent,” according to the report. survey published Tuesday evening.

Billionaire investor Warren Buffett has in the past called bitcoin “the rat’s death squared.” A third of respondents to the JPM survey agreed with this view. Another 16% thought it was a passing fad.

In other findings, investors said they expect the benchmark US stock index S&P 500 (.SPX) to trade between 4,200 and 4,600 points by the end of 2021 and see a reminder of central bank stimulus and inflation as key market risks. The S&P 500 closed at 4,246.44 on Tuesday.

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Reporting by Thyagaraju Adinarayan; Editing by Karin Strohecker and Alison Williams

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