JP Morgan now recommends including bitcoin in investment portfolios. The firm already sees benefits from adding a small percentage of bitcoin to a multi-asset portfolio.

JPMorgan Chase expressed this week that it welcomes investing 1% of capital in cryptocurrencies. The US banking and financial services company added that putting that amount in crypto assets can help ” achieve an efficiency gain in overall portfolio risk-adjusted returns.”

The firm’s global research director, Joyce Chang, and vice president of strategic research, Amy Ho, wrote in a note to their clients that they see benefits from adding a small percentage of bitcoin to a multi-asset portfolio :

“In a multi-asset portfolio, investors can probably add up to 1% of their allocation to cryptocurrencies to achieve any efficiency gains in the portfolio’s overall risk-adjusted returns.”

This ” recommendation ” from JP Morgan comes just days after he claimed that Bitcoin was a “secondary economic spectacle” and expressed that recent bitcoin prices are well above estimates of the cryptocurrency’s fair value.

The investment bank has come a long way of opinion regarding Bitcoin. In 2017 its CEO, Jamie Dimon, called the cryptocurrency a fraud. Earlier this month, Co-Chairman Daniel Pinto expressed that he is confident that demand for bitcoin will increase at any time, adding that: “If over time an asset class develops that is going to be used by different managers of assets and investors, we will have to get involved ”.

Meanwhile, analysts at the company have predicted that the price of bitcoin could hit $ 146,000 as the cryptocurrency’s competition with gold intensifies.