David Bailin of Citibank believes that Bitcoin will perform well due to the high level of investor interest. Despite stating that cryptocurrencies can be part of investment portfolios, executives believe that Bitcoin has better investment opportunities than Bitcoin in a “huge unstoppable trend.”
Citi executives predict Bitcoin will “do a good job”
David Bailin is the Managing Director and Chief Investment Officer (CIO) of Citi Private Bank, a subsidiary of Citigroup, dedicated to serving wealthy individuals and families. He is listed as a “wealth expert” on the Citibank website. Pailin talked about Bitcoin in an interview with Yahoo Finance on Wednesday. He said:
I tell people that there is no doubt that I think Bitcoin will perform well because everyone’s interest is high.
However, Citi executives pointed out that this “fundamentally” scared him. Bailin joined Citigroup in 2009 as the head of global management investment and was promoted to head of global investment in October 2017.
Bailin explained: “At Citi Private Bank and Citi Global Wealth, we really focus on the concepts of core investment and opportunistic investment.” The former accounts for 85% or more of the total holdings of traditional investment portfolios and focuses on “fundamental investments”. The latter is where Citi customers can choose to invest in Bitcoin.
The CIO of Citi Private Bank warned:
In order to give you access to Bitcoin, if you do not own the real Bitcoin, then any of these funds or structures may be a very, very inefficient way.
In January, Citi announced that it had established a single wealth management organization, Citi Global Wealth, to unify the wealth management teams of the Global Consumer Bank (GCB) and Institutional Client Group (ICG).
The Chief Information Officer (CIO) looks for a way to get customers exposed to Bitcoin, but sees better opportunities elsewhere
Bailin said that he has been looking for ways to provide customers with bitcoin risk exposure, including a “total return swap” agreement, which allows customers to “invest in the appreciation of the price of actual digital currencies.” He believes, “I think this may be the most effective method.”
Citibank wealth expert added that although Bitcoin may be the topic of the city, he believes that Citi customers have better opportunities in “unstoppable trends” such as big data, satellite technology, solar energy, etc. The chief information officer believes:
These huge unstoppable trends, as we said, are indeed excellent investment opportunities. In the long run, or in the long run, I think it is definitely better than Bitcoin.
He added that with these investments, “you can identify them, you can quantify them, you can find the companies involved, and you can see that the size of the market we’re talking about is extraordinary.”
Earlier this month, Citigroup released an in-depth report stating that Bitcoin is at a turning point and may become the currency of choice for international trade. The company wrote: “We may be at the beginning of a large-scale transformation of cryptocurrency into the mainstream.”
What do you think of this Citi executive’s position on Bitcoin? Let us know in the comments section below.
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