Cryptocurrency may be a new asset class that is quite volatile when compared to other investment vehicles available in the market. But, it is an investment vehicle that is a promising good hedge against uncertain macro-economic events. Several big Wall Street names have already invested in cryptocurrencies like Bitcoins, while other institutional investors are still weighing their options. Here is what a survey conducted by JP Morgan revealed.
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A recent study carried out by JP Morgan signaled that more institutional investors may be interested to invest in cryptocurrency. Investment Bank JP Morgan surveyed 3400 investors who were representing 1500 institutions and they discovered that 11% of respondents worked at firms that were investing in cryptos, while 89% did not. However, in the future, twice as many institutions were likely to invest in cryptos as the ones who have already had. This reveals that institutional money will continue to flow into cryptos, making it an investment vehicle to cautiously look out for.
According to JP Morgan’s Strategist Amy Ho and Joyce Chang, “In a multi-asset portfolio, investors are likely to add 1% of their allocation to cryptocurrency in order to achieve any efficient gain in their risk-adjusted investment portfolio,”
Although Bitcoins and Altcoins have had a rocky week, we have to understand that Bitcoin prices have alone surged five-fold. Even former Federal Reserve Economists Roberto Perli and Benson Durham have said that cryptocurrency may provide a good hedge against macro-economic risks. Their calculations have shown that the volatility of equity portfolios can be reduced by adding more amount of digital assets.
If you want to invest in cryptos that start by investing a small amount of your savings into emerging altcoins like XcelToken Plus. Do not risk the money that you cannot afford to lose and HODL! Think of people who invested few cents in Bitcoin only to become millionaires 7 years later. That is the return of investing in cryptos. XcelToken Plus is an ERC-20 Token built on an Ethereum Platform. The token provides you with great use cases like booking hotels and flights in a decentralized travel platform. You can trade XcelToken Plus in leading crypto exchanges like Livecoin, LAToken, and XcelToken Exchange.