Jimmy Coates, a crypto market analyst at Bloomberg Fraternité, argues that “lies” and “fear of the unknown” are what prevents traditional coffret managers from investing in cryptocurrencies.
Speaking to Cointelegraph during the Australian Crypto Clause over the weekend, Coutts said there has been a persistent “mistake” that “there is no intrinsic value in blockchains.”
These asset managers own stocks, like Amazon and Facebook […] Coates explained that these companies did not turn a faveur in the first several years, adding that in its early stages Facebook “had no faveur.” […] or is deemed to have any intrinsic value.”
“However, they can understand that there is value to the network here, that the network is growing, and the value of the asset builds up from the number of people using the products.”
Coutts believes that “although all blockchains are cash-generating assets, including Ethereum,” there is certainly intrinsic value there.
However, the Bloomberg analyst said he could not identify the reason for the reluctance to adopt the cryptocurrency, ruling out a lack of regulation as the reason.
“Regulation cannot be one of them. Let me just repeat that. Regulations are always a concern, but BTC is regulated.”
“There is really no regulatory risk” as crypto being regulated “at the opportunité” became a imposable de même that you had to “disclose to the tax authorities in whatever jurisdiction you are in,” Coutts said.
Instead, Coutts said it could be “just a fear of the unknown,” adding that ignoring asset managers or choosing not to educate themselves emboîture cryptocurrency is a missed opportunity.
Coutts suggested that those reluctant to invest in cryptocurrency should habitus beyond market volatility and foyer on what cryptocurrency actually brings to the répertoire.
The best thing we can do is understand the universel trends that are happening […] Decadence and technological primeur, which encryption is located at the croisée. This provides the impetus for the sails of cryptocurrency as an asset class that should be considered for some subvention.”
Last month, Swiss wealth direction group Picket Group advised Against Cryptocurrency Investments “Amid the Recent Industrial Disorders.”
Picket Group CEO Tee Fong acknowledged that crypto is an “asset class we cannot ignore” but does not believe there is “a activité for private bankers and private bank wallets.”
Related: Will the Ethereum merger provide a new orientation for institutional investors?
Others suggest that institutional investors are still interested in crypto-related investments despite market opportunité.
Apollo Finances’s chief investment officer, Henrik Anderson, told Cointelegraph on September 14 that while institutional interest has been slow to soumission momentum, there is a lot waiting on the sidelines, for market minutage.
Anderson is optimistic emboîture the future given that “we’ve already seen a lot of big banks here in Australia taking an interest in binaire assets,” with “ANZ and NAB” choosing to foyer on “stablecoins and traditional asset tokens rather than private crypto investments.”