Jared Gross, a strategist at JPMorgan, has said a large number of institutional investors did not buy digital currencies during 2020-2021 and are now glad they resisted temptation, as their value has plummeted along with other risky assets in 2022.
According to him, institutional capital has virtually ceased to be interested in Bitcoin and other virtual currencies.
According to him, investors who directed part of their capital to the cryptocurrency sector during 2020-2021 have suffered heavy losses, and it is now unlikely that they will ever resume investing in BTC.
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According to Gross, the volatility of digital currencies is the main factor hindering their institutional adoption.
He has added:
"Most institutional investors probably are breathing a sigh of relief that they didn’t jump into that market and are probably not going to be doing so anytime soon."