Specialists advise bank clients of JPMorgan to safeguard their investment portfolio from volatility in traditional asset groups by investing in crypto.
The bank strategists advised financiers to invest in Bitcoin about 1% of their investment portfolio, as reported by Bloomberg. They think that cryptocurrencies are capable of hedging risks from instabilities in traditional asset groups such as stocks, commodities, and bonds. Experts propose investing not much more than 1% in the leading digital coin to minimize the risk of potential sharp drops in the cost of Bitcoin.
“In a multi-asset investment portfolio, investors can probably put up to 1% of their resources to crypto to bring about efficiency gains in the portfolio’s total risk-adjusted payback,” the expert advisory reads.
The investment bank’s market analysts draw the attention of their clients to the fact that digital currencies are rather an investment instrument than a support currency.
Earlier this month it became clear that another mastodont investment bank, Morgan Stanley, is considering investing in Bitcoin.
