P Morgan expects corporate investment in Bitcoin to increase

JP Morgan says institutional investors ' interest in cryptocurrency may grow as bitcoin becomes less volatile
JP Morgan said in a research report that institutional investors ' interest in cryptocurrency may increase with the declining volatility in Bitcoin

“The signs that Bitcoin's volatility is normalizing are encouraging,” JP Morgan said in a research report, noting that normalization in Bitcoin may be of interest to institutional investors.

For Bitcoin, the quarterly volatility has fallen from 90 percent to 86 percent, the institution said, while the 6-month volatility is on a steady course of about 73 percent. Strategists said that with reduced volatility, a large number of institutional investors could warm to the cryptocurrency environment.

According to JP Morgan strategists, volatility in Bitcoin also led to a high need for venture capital from a risk management perspective.

While none of the major banks in the US currently provide direct access to Bitcoin, Goldman Sachs announced in the second quarter that Bitcoin and other digital assets would be made available to customers in its private asset management unit.

JP Morgan strategists noted that there were $ 20 billion outflows from valuable metal-based exchange-traded funds in the last two quarters, while $ 7 billion in inflows to Bitcoin-based exchange-traded funds.