When there is a change, there is resistance and especially from the sides of those who are going to be washed off by its impacts. The case has been the same with the change being brought about by cryptocurrencies and resistance by the global banking institutions that have become too used to controlling the mountains of wealth.
In Bloomberg’s weekly podcast, Jared Gross, head of institutional portfolio strategy at JP Morgan expressed his insouciant take on cryptocurrencies. Jared said, “ As an asset class, crypto is effectively nonexistent for the largest institutional investors”. Jared Gross seemed particularly perturbed about the acute volatility and ‘lack of any intrinsic returns’ in cryptocurrencies.
These views are coming from an influential position in Morgan and align perfectly with the take of their CEO Jamie Dimon who called crypto ‘a decentralized Ponzi scheme’ this September. However, it is surprising that the views of these big shots are being undermined by the actions of the bank.
This November, JP Morgan executed its first cross-border financial transactions via Polygon, an Ethereum Layer-2 solution. Apart from that, JP Morgan has a dedicated blockchain division named Onyx that terms itself as the ‘world’s first bank-led platform of exchange of digital assets’. On one hand, Mr. CEO criticizes the entire industry as a Ponzi scheme, on the other hand, JP Morgan establishes dedicated divisions to cater to the needs of revolutionizing finance. Seems that the mismatch in actions and words of a leading global investment bank portrays the FOMO that traditional financial institutions have to undergo because of blockchain tech.
Apart from this, the statement by Jared Gross does not seem to be anything more than an ill-informed personal opinion. According to past market trends, institutional investors are gradually exposing their portfolios to cryptocurrencies and designating separate funds for crypto investments. The empirical data depicts that a single percent of portfolio exposure in crypto has resulted in outperformance of more than 14% in the last 7 years. ...Read More
WeWork - Analysts assess, the conditions that occur at WeWork could be a signal of the end of the era of startup companies loss incentive ‘money to burn’.
“We're pretty sure there are about US$ 10 billion to US$ 11 billion they have (SoftBank) invest (at WeWork),” said Research Analyst in Equity Technology at Jefferies, Atul Goyal quoted from Fortune, Friday (11/10).
While the valuation WeWork called down from US$ 47 billion to US$ 10 billion currently.
Goyal estimates, SoftBank will be loss if the valuation WeWork down up to US$ 10 billion.
Equity Strategist at Morgan Stanley Michael Wilson said, the failure of the WeWork could be a signal the expiration of the ‘day-to-day capital without limit to the business that does not profit’.
It was conveyed in a memorandum dated September 29, 2019 are given to the client.
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Bitcoin, The king of Cryptocurrency stuns the world with the massive price of $40 K USD!
For the past few days, the BTC price graph is raising steadily and hits the historical peak.
This great news brought bright smile in crypto traders & investors face on the other hand, people who missed out BTC has a long face.
Institutional investment MicroStrategy, a business analytics company, converted $425 million worth of cash in its treasury to Bitcoin.
Institutional Investment considerably increases the trade volume than individual investors.
JP Morgan share rider stated that the bitcoin would potentially replace the traditional investment like gold for the large extent.
