Leaked Client Note Reveals What a Bank Really Thinks About BTC

June 16, 2020 11:05 AM
JP Morgan had a BTC/crypto client note leak
BTC performs like other "risky assets like equities"
Banks' crypto debate is an asset class milestone
Crypto and Bitcoin Market Cap Story of Day


JP Morgan has become the latest major global investment bank that had a client note leak on their take on bitcoin (BTC) and crypto. The firm is the latest in a string of majors to comment on the sector amid recent market turmoil. While firms tend to disagree on the investment case for the sector, we believe the attention in and of itself demonstrates maturation in the BTC / crypto investment thesis.

According to a JP Morgan research note seen by several crypto-news outlets, analysts from the firm believe BTC proved its resilience during the March 12-13 sell-off. The paper also notes that, “…there is little evidence that Bitcoin and [other crytpos] served as a safe haven….” but rather, performed similarly to, “risky assets like equities.” The piece follows a call that Goldman Sachs did with a group of clients where the participating Goldman analysts said they didn’t see a portfolio use-case for crypto. Bloomberg, lead by senior commodity strategist Mike McGlone, has put out a slew of bullish reports on the space. Fidelity released their second annual survey on institutional participation in the space last week and sends a slew of crypto-focused content to clients throughout the year

We have frequently cited the growing chorus of investors who have come to view BTC/crypto as a potential hyperinflation hedge as a major milestone for the investment thesis. If there were another recent milestone to point to it would be the sheer fact that major investment banks are debating that thesis among themselves. In 2017 the rally was seen in the peripheral for many of these institutions which lacked the personnel to make informed notes or statements on the topic. Were the space to see another wave of interest there would be a growing number of resources to help investors better navigate.

About the Author

FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets. You can subscribe to FRNT Financial Morning Note at https://www.frnt.io/morningnote