JP Morgan has released a report titled “The Dynamics and Demographics of US Household Crypto Asset Use,” covering the US crypto market. The report found that the pandemic stimulus increased crypto adoption from 3% to 15% in the US population, and most US residents bought crypto for the first time during price spikes. The report also revealed that most crypto investors are young male Asians with high incomes, and it showed a two-to-one ratio of flows to crypto exchanges compared to flows to checking accounts, suggesting that crypto investors mostly hold their assets.
JP Morgan’s Comprehensive Crypto Report: Key Findings
Earlier this month, JP Morgan published a report analyzing the crypto market in the United States. This is significant because JP Morgan is the largest U.S bank and has historically been very skeptical of crypto. Not only that, but U.S investors continue to be the largest contributors to the crypto market. As such, the findings in JP Morgan’s report could shed light on what will happen in the crypto market in 2023.
H2: JP Morgan’s Relationship with Crypto
To understand the significance of JP Morgan’s report, it’s important to understand the bank’s relationship with crypto. JP Morgan’s CEO Jamie Diamond is famous for being anti-crypto and he’s been vocal in his opposition since crypto went mainstream in 2017. However, JP Morgan, the bank, has been a bit more balanced, especially during the current crypto cycle.
H2: JP Morgan’s Crypto Report
On the 13th of December, JP Morgan published what appears to be its most comprehensive crypto report to date. It is titled “The Dynamics and Demographics of U.S household crypto asset use,” and it reveals some fascinating insights into the crypto market.
H2: Question Structure
The report is structured around three questions: first, how has crypto adoption evolved over time; second, what are the demographics of people using cryptocurrencies; and third, how much financial risk did retail investors have.
H2: Four Key Findings
The report reveals four key findings. The first is that most Americans bought crypto for the first time when prices were spiking. The second is that most crypto investors are young, male, Asian, and have high incomes. The third is that most crypto investors don’t invest that much in crypto relative to their income, meaning less risk. The fourth is that between 2017 and mid-2022, there were twice as many flows to crypto exchanges than there were back to checking accounts, suggesting that crypto investors are mostly buying and holding.
In conclusion, JP Morgan’s crypto report provides some fascinating insights into the crypto market in the United States. While the bank has a mixed relationship with crypto, the report shows that it is taking the crypto market seriously and that its findings could shed light on what will happen in the market in the coming year.