JPMorgan has reportedly quietly told some of its clients to consider Bitcoin as a portfolio diversifier, noting the asset could be beneficial if \u201csized correctly.\u201d<\/p>\n
According to a report by Wolfie Zhao for The Block, JPMorgan Private Bank has distributed an educational deck of slides to clients of its wealth management service in order to help them better understand the risks and benefits of Btcoin and cryptoassets. The deck, which The Block was able to obtain a copy of, apparently covers the basics of Bitcoin in addition to the implications of adding the cryptoasset to an investment portfolio.\u00a0<\/p>\n
Despite covering cryptoassets, the deck claims to be for \u201cinformational purposes only\u201d and says\u00a0 \u201cJ.P. Morgan Securities LLC does not endorse, advise on, transmit, sell or transact in any type of virtual currency.\u201d\u00a0<\/p>\n
A slide titled \u201cHow others are valuing crypto?\u201d detailed three common metrics used by market analysts, while suggesting \u201csignificant upside [of bitcoin] is possible.\u201d\u00a0<\/p>\n
The report also claims to use Metcalfe\u2019s law \u2014 a value of a network proportional to the square number of it users \u2014 to determine Bitcoin\u2019s per-coin valuation at $21,667.\u00a0<\/p>\n
The deck\u2019s authors argued against considering Bitcoin as a safe haven asset on par with gold, at least for now:<\/p>\n
\u201cBitcoin is not gold, nor do we think of it as such. When it comes to portfolio construction, it has diversifying properties like gold, but its volatility characteristics and correlation profile refute the comparison to the traditional safe haven asset.<\/em>\u201c<\/p>\n The deck concludes Bitcoin can diversify an investment portfolio, but should not be considered as a protection asset:<\/p>\n