Bloomberg Intelligence crypto market analyst Jamie Coates argues that traditional portfolio managers are deterred from investing in cryptocurrency.
Speaking to Cointelegraph at the Australian Crypto Convention over the weekend, Coates argued that there is a persistent “lie” that “there is no intrinsic value in blockchain.”
“These asset managers have stocks like Amazon and Facebook […] These companies had no revenue for the first several years, Coates said, adding that Facebook was “unprofitable” in its infancy. […] or appear to have any intrinsic value.
But you can understand that there is network value here, that the network is growing, that the value of the asset is how many people use the product.
Coates believes that “although not all blockchains, including Ethereum, are money-generating assets,” there is indeed intrinsic value.
However, the Bloomberg analyst ruled out a lack of regulation as a reason, saying he could not put his finger on why there is a reluctance to embrace cryptocurrency.
“The rule cannot be one of these. Let me just repeat this. Regulation is always a concern, but BTC is regulated.
“There’s really no regulatory risk,” Coutts said, adding that the “moment” crypto becomes a taxable commodity “in any jurisdiction you have to declare it to the tax authorities.”
Instead, Coates said it could be “just fear of the unknown” and that it’s a missed opportunity that asset managers are ignoring or choosing not to educate themselves on cryptocurrency.
Coutts suggested that those hesitant to invest in cryptocurrency should look beyond market volatility and focus on what cryptocurrency actually brings to the table.
The best thing we can do is understand the global trends that are happening. […] Debasement and technological innovation, which is at the intersection of crypto. That provides the wind behind crypto sails as an asset class that should be considered for some allocation.
Last month, Swiss wealth management group Picket Group advised against crypto investments “amid recent industry turmoil.”
Te Fong, CEO of Pickett Group, acknowledged that crypto is an “asset class that we cannot ignore,” but “doesn’t think there is a place for private banks and private bank portfolios.”
Related: Will Ethereum integration provide a new destination for institutional investors?
Others suggest that institutional investors are interested in crypto-related investments despite market conditions.
Henrik Andersen, chief investment officer of Apollo Capital, told Cointelegraph on September 14 that although institutional interest is gradually increasing, there are many who are waiting for the market.
Anderson is optimistic about the future because we have already “seen a number of major banks here in Australia taking an interest in digital assets” with “ANZ and NAB” rather than focusing on “stablecoins and traditional asset tokenization, crypto investments in particular”.