Furthermore, JPMorgan does not make a case for bitcoin as a portfolio diversifier, instead viewing it as a “speculative asset and a hedge against monetary easing,” according to comments by portfolio manager Dr Sheena Shah and head of digital asset strategy Dennis Cristallo.
“It lacks a strategic role in portfolios other than as a bet on fiat currency expansion or future asset trading on blockchains,” they added.
“BTC mostly trades like a high beta risk asset that tracks global money supply growth, but it is sometimes treated as ‘digital gold.’ Unstable correlations with other assets present a modeling hurdle. A further challenge is forecasting an asset whose fundamentals are not cash flows and whose economics may be as much about adoption, regulation and liquidity as technology.”
UPDATE (Oct. 20, 13:15 UTC): Updates to specify report is published by JPMorgan Asset Management.
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