Strategists at JPMorgan Chase, one of the largest investment banks in the United States, believe that Tesla’s $ 1.5 billion purchase of Bitcoin (BTC) won’t necessarily generate much of that investment.

A group of strategists at JPMorgan, led by Nikolaus Banjertzoglu, has claimed that the highly volatile nature of Bitcoin could keep large corporate cashiers away from Bitcoin. Bloomberg said Tuesday that the main problem with the idea that Tesla’s corporate treasurers will follow is the volatility of bitcoin.

According to JPMorgan, even a small portion of bitcoins in a company’s tax portfolios will involve a high level of risk, as these companies typically maintain portfolio volatility at around 1%. Strategists stated that although Bitcoin accounts for 1% of the total allocation, it would “cause a significant increase in volatility for the entire portfolio,” which could increase portfolio volatility to 8% due to the 80% of Bitcoin’s annual volatility.

Elona Musk of Tesla Motors made headlines on February 8th, announcing the purchase of $ 1.5 billion of bitcoins in a file with the US Securities and Exchange Commission. The news sparked a payoff in an already growing cryptocurrency market, with Bitcoin reaching a new full-time high of over $ 48,000.

After this massive move, a number of key cryptocurrency figures, including Galaxy Digital founder Michael Novogratz, expressed confidence that “every company in America” ​​would follow Tesla’s decision to take out a portion of its Bitcoin balance. Michael Sonnenshin, CEO of Grayscale Investments, also predicted that the world will soon see a number of “other executives looking to the future and disruptive companies that are truly aware that it has gone from cause to cause not.”

Some cryptocurrency players have also speculated that the US tech giant Apple may be the next institutional player that could benefit from crypto assets.

Source: CoinTelegraph

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