Jamie Coutts, Cryptocurrency Markets Analyst at Bloomberg Intelligence, maintains that the “falsehoods” and the “fear of the unknown” is what has curbing traditional wealth managers when investing in cryptocurrencies.
Speaking to Cointelegraph during the Australian Crypto Convention over the weekend, Coutts maintains that there has been an ongoing “falsehood” that “there is no intrinsic value in blockchains.”
“These asset managers own stocks, like Amazon and Facebook […] that during the first years these companies did not have profits,” Coutts explained, adding that Facebook in its early stages had “no benefits […] Nor was it seen to have any intrinsic value.
“However, they could understand that there is a network value here, that the network is growing, that the value of the asset accumulates from how many people are using the products.”
However, the Bloomberg analyst said that could not understand why there was hesitation in adopting cryptocurrencies, ruling out lack of regulation as the reason.
“Regulation can’t be one of them. Let me reaffirm that. Regulation is always a concern, but BTC is regulated.”
Coutts said that “there is not really a regulatory risk”, because cryptocurrencies were regulated “at the time” in which they became a taxable item that had to be “declare to the tax authorities in any jurisdiction in which you are located.”
Instead, Coutts said it could be “only the fear of the unknown”, adding that asset managers who ignore or choose not to educate themselves about cryptocurrencies is a missed opportunity.
Coutts suggested that those hesitant to invest in cryptocurrencies should look beyond market volatility and focus on what cryptocurrency actually brings.
“The best we can do is understand the global trends that are taking place […] devaluation and technological innovation, of which crypto is at the intersection. That provides the wind behind the sails of cryptocurrencies as an asset class that should be considered for some allocation.”
Last month, Swiss wealth management group Picket discouraged cryptocurrency investments “amid recent industry turmoil.”
Picket Group CEO Tee Fong acknowledged that cryptocurrencies are “an asset class we cannot ignore”, but he doesn’t think there is “a place for private bankers and private bank investments.”
Others suggest that institutional investors remain interested in crypto-related investments despite current market conditions.
The chief investment officer of Apollo Capital, Henrik Anderson, told Cointelegraph on Sept. 14 that although the institutional interest has been slow to gain momentumthere are many waiting on the sidelines, timing the market.
Anderson is optimistic about the future given that we have already “seen several major banks here in Australia take an interest in digital assets,” with “ANZ and NAB” opting to focus on “stablecoins and tokenization of traditional assets rather than investments in digital assets.” cryptocurrencies specifically.”
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