JPMorgan analysts approve the use of Bitcoin as a hedging asset
Strategists at the American investment bank JPMorgan consider investing 1% of a portfolio in bitcoin and other currencies as a good step to hedge the risks of the traditional financial system.
Analysts at JPMorgan noted that the risks of investing in stocks, bonds and commodities are increasing, and Bitcoin is excellent for hedging these risks. However, the volatility of cryptocurrencies is still too high, so only a small percentage of the investment portfolio is worth investing in digital assets.
“In a multi-asset portfolio, investors may well invest up to 1% of their funds in cryptocurrencies to improve efficiency while maintaining an acceptable level of risk,” said analysts Joyce Chang and Amy Ho.
Note that interest in cryptocurrencies is constantly growing. According to Crypto.com, 106 million people are currently using digital assets around the world. Institutional investors are also ramping up their cryptocurrency purchases.
Earlier, a group of JPMorgan analysts led by Nikolaos Panigirtzoglou said that bitcoin is more of a risky asset than a defensive one.