2021-1-22 23:01 |
With almost 100 percent gains in the past month, Bitcoin has become a darling for shrewd investors and organizations worldwide. However, some bank executives remain unimpressed with its performance.
Too Volatile to TrackGerald Moser, the Chief Strategist at British banking giant Barclays, bashed Bitcoin’s volatility and warned that investors keep the asset out of their portfolio.
In an interview with the London-based Financial News, the bank executive criticized the top cryptocurrency, explaining that its price movements have made it ‘uninvestable’ from a portfolio perspective.
Moser’s Bitcoin assessment seems unrealistic, with the Chief Strategist claiming that the asset’s recent rally was primarily due to retail investors jumping on the trend. Ultimately the rally will become unsustainable, and Bitcoin will come crashing down, Moser posits.
The assessment conflicts significantly with other industry experts, who have seen several institutions plow millions of dollars into the leading cryptocurrency.
Institutions Love Crypto, Even in the U.K.Institutional investment has flown in from the United Kingdom as well. Last year, Ruffer Investment, an investment management firm based in Bitcoin, pledged about 2.5 percent of its Multi-Strategies Fund into the leading digital asset. The fund itself holds about $2 7.2 billion in assets under management, making Ruffer’s Bitcoin commitment as high as $745 million.
In an investment review from earlier this month, Jonathan Ruffer, the company’s chief executive, explained that they had moved into Bitcoin due to their belief that it could eventually challenge gold as the world’s “supra-currency.”
The CEO pointed out that while Bitcoin was a “nonsensical asset,” is aligned with the company’s vision. At the same time, the company had also assessed Bitcoin’s performance for a while before deciding to take the plunge. Ruffer said,
“We have done much work on assessing the danger that bitcoin is a wrong’un. We have been watching it for a longish time, and our judgment is that it is a unique beast as an emerging store of value, blending some of the benefits of technology and gold.”
Even British banks have alluded to the rise of cryptocurrencies and are now bracing up. Last month, Standard Chartered, a fellow banking giant, announced plans to provide crypto custody solutions to institutional investors.
In its press release, Standard Chartered unveiled Zodia in partnership with investment management firm Northern Trust. The new custody platform is subject to regulations from the Financial Conduct Authority (FCA), and it is expected to begin operating this year.
Zodia will initially provide support for Bitcoin, Ether, Litecoin, Bitcoin Cash, and XRP. With the SEC's hammer ready to come down hard on Ripple, it's unclear if the partners will go forward with XRP support.
Bitcoin/USD BTCUSD 29,343.4869 -$5,011.87 -17.08% Volume 81.34 b Change -$5,011.87 Open$29,343.4869 Circulating 18.61 m Market Cap 545.99 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post Barclays Bank Executive Bashes ‘Uninvestable’ Bitcoin for Its Volatility first appeared on BitcoinExchangeGuide.Similar to Notcoin - Blum - Airdrops In 2024
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