Jamie Coutts, Crypto Market Analyst for Bloomberg Intelligence argues that “falsehoods” and “fear from the unknown” is exactly what continues to be holding back traditional portfolio managers from purchasing cryptocurrency.
Talking with Cointelegraph throughout the Australian Crypto Convention over the past weekend, Coutts argues there’s been a continuing “falsehood” that “there isn’t any intrinsic value in blockchains.”
“These asset managers own stocks, like Amazon . com and Facebook […] which for that first many years these businesses didn’t have earnings,” described Coutts, adding that Facebook in the infant stages “didn’t have profit […] or seen to possess any intrinsic value.”
“Yet they might understand there’s a network value here, the network keeps growing, that the need for the asset accrues from the number of artists are using these products.Inches
Coutts believes that “although not every blockchains are cash generative assets, including Ethereum” there’s certainly intrinsic value there.
However, the Bloomberg analyst stated he couldn’t quite put his finger on why there is a hesitation to embrace cryptocurrency, ruling out insufficient regulation because the reason.
“Regulation can’t be among them. Allow me to just restate that. Regulation is definitely an issue, but BTC is controlled.”
Coutts stated “there isn’t a real regulatory risk” as crypto grew to become controlled “the moment” it grew to become a taxed item you had to “disclose towards the tax government bodies in whatever jurisdiction you’re in.”
Rather, Coutts stated it may be “just the worry from the unknown,” adding that asset managers ignoring or selecting not educate on their own cryptocurrency is really a missed chance.
Coutts recommended that individuals reluctant to purchase cryptocurrency need to look past the market volatility and concentrate on which cryptocurrency really has.
“The best factor that are going to is comprehend the global trends which are happening […] debasement and technology, which crypto reaches the intersection of. That gives the wind behind the sails of crypto being an asset class that needs to be considered for many allocation.”
Recently, Swiss wealth management group Picket group advised against crypto investments “amid the current industry turmoil.”
Picket Group Chief executive officer, Tee Fong, acknowledged that crypto is “an asset class that people cannot ignore” however doesn’t think there’s “a spot for private bankers as well as for private bank portfolios.”
Related: Will the Ethereum Merge provide a new place to go for institutional investors?
Others claim that institutional investors remain thinking about crypto-related investments regardless of the market conditions.
Chief Investment Officer of Apollo Capital, Henrik Anderson, told Cointelegraph on Sept. 14 that although institutional interest continues to be slow in gaining momentum, there are lots of waiting around the sidelines, timing the marketplace.
Anderson is positive concerning the future considering that we’ve already “seen some of the major banks within Australia taking a desire for digital assets,” with “ANZ and NAB” selecting to pay attention to “stablecoins and traditional asset tokenization instead of crypto investments particularly.”
