‘Fear of the unknown’ holds back tradfi investors from crypto — Bloomberg analyst
According to Jamie Coutts, a crypto market analyst at Bloomberg Intelligence, “lies” and “fear of the unknown” are what keep traditional portfolio managers from investing in cryptocurrencies.
Speaking to Cointelegraph on the sidelines of the Australian Crypto Conference over the weekend, Coutts argued that the “lie” that blockchain has no intrinsic value has persisted.
“These asset managers own stocks like Amazon and Facebook […] In the first few years, these companies were not profitable,” Coutts explained, adding that Facebook was in its infancy “not profitable. […] or deemed to have any intrinsic value. “
“But they can understand that there is a network value here, the network is growing, and the value of the asset depends on how many people use these products.”
Coutts believes that “while not all blockchains are cash-generating assets, including Ethereum,” there is certainly an intrinsic value in it.
However, the Bloomberg analyst said he could not fully explain why he was hesitant to accept cryptocurrencies, ruling out a lack of regulation.
“Regulation cannot be one of them. Let me reiterate. Regulation is always an issue, but BTC is regulated.”
Coutts said there is “actually no regulatory risk” because cryptocurrency is regulated “at the moment it becomes a taxable item” and you have to “disclose it to the tax authorities in your jurisdiction.”
Instead, Coutts said it could be “just a fear of the unknown,” adding that it’s a missed opportunity for asset managers to ignore or choose not to be educated in cryptocurrency.
Coutts suggested that those who are hesitant to invest in cryptocurrencies should look beyond market volatility and focus on the impact cryptocurrencies actually have.
“The best thing we can do is understand the global trends that are happening […] Devaluation and technological innovation, this is the meeting point of cryptocurrencies. This provides sail for crypto as an asset class that should be considered for some allocation. “
Last month, Swiss wealth management group Picket group Suggest Opposition to crypto investments “in the midst of recent industry turmoil.”
Picket Group CEO Tee Fong acknowledged that crypto is an “asset class that we cannot ignore,” but believes that “there is no place for private bankers and private banking portfolios.”
related: Does Ethereum Merger Offer Institutional Investors a New Destination?
Others argue that institutional investors are still interested in crypto-related investments despite poor market conditions.
Henrik Anderson, chief investment officer at Apollo Capital, told Cointelegraph on Sept. 14 that despite the slow pace of institutional interest, many are watching to time the market.
Anderson is optimistic about the future given that we have “seen several major banks in Australia taking an interest in digital assets,” with “ANZ and NAB” choosing to focus on “stablecoins and traditional asset tokenization rather than crypto investments” Specifically. “
