Industry Analysis

JP Morgan and ex-Goldman Sachs exec on institutional investors reaction towards this crypto bear market

The current bear market has been arousing numerous discussions within the crypto space. Recently, an ex Golman Sachs executive and a team monitoring cryptocurrency developments within JP Morgan have given their take on the impact on the bear market and institutional investors reaction towards crypto in general.

They have two different view points on the current market. While the ex Goldman Sachs executive, Greg Tusar believes this current market portrays opportunities for institutional investors, JP Morgan states that the current market pushes away Institutional investors.

Ex-Goldman Sachs executive sees opportunities on current market

Greg Tusar is a former head of electronic trading at Goldman Sachs and according to him and his previous experience, the current market can be likened to the early days of electronic trading of equities.

“It’s early stage, there’s a lot of opportunity to build great businesses and have impact”

He also believes this is the right time for start ups to jump into the ecosystem as he has also cofounded Tagomi Holdings, a live electronic crypto brokerage.

The electronic crypto brokerage firm is said to apply electronic trading solutions for sophisticated traditional investors and they hope their solution can remove the huddles current digital asset investors face.

Bear market scares off institutional investors according to JPMorgan

According to a team of researchers at JP Morgan, the participation of institutional investors in Bitcoin and similar currencies have declined.

“Participation byfinancial institutions in Bitcoin trading appears to be fading” JP Morgan report.

They also observed that Altcoins are suffering more than even Bitcoin in this bear market.

According to them, the bear market is chasing miners away as mining activities are proving less profitable as transaction size in the market has dropped from $5000 a year ago to about $160. 

These observations have left the firm to conclude that the bear market is chasing away institutional investors from putting their money into the market.

However, JP Morgan has not been the most crypto friendly bank in the US as their CEO Jamie once said he will fire any employee who touches or trades in cryptocurrencies.

What are your thoughts on institutional investors reaction towards crypto? Where do you see the market heading?

Let’s know your thoughts in the comment section.


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