Many asset managers have warned to invest in cryptocurrencies, including UBS Wealth Management, Pimco, T. Rowe Price and Glenmede Investment Management. UBS (UBS) said: “As encryption becomes more and more mainstream, we expect to adopt stricter policies and regulatory measures on encryption.
Asset managers pay attention to crypto investments
“Financial Times” reported on Monday that after the recent price fluctuations, UBS Wealth Management, Pimco, T. Many asset managers, including Rowe Price and Glenmede Investment Management, have expressed caution about cryptocurrencies.
UBS Wealth Management explained that the price volatility following Tesla’s Bitcoin announcement “highlights the company’s exposure to crypto balance sheet risks.” The bank added:
We hope that as cryptocurrencies become mainstream, stricter policies and regulatory control measures will be adopted in the future.
Last week, Bitcoin News reported that UBS, Switzerland’s largest bank, is exploring the provision of cryptocurrency services to its wealthy customers.
Nicholas Johnson, Pimco’s investment manager, is the Commodity, Quantitative and Multi-Asset Strategy Portfolio Manager of Pacific Investment Management Corporation (PIMCO). He questioned the use of Bitcoin to hedge inflation. “This idea of thinking that cryptocurrencies are inflationary assets is curious. In recent years, inflationary assets have performed poorly, while cryptocurrencies have performed well. People are looking for reasons why cryptocurrency prices are rising.” He believes.
Rob Sharps, President and Investment Director of T. Rowe Price, told the publication: “Encryption has an impact on the entire capital market. We are capital market experts. Ultimately, the commissions we manage for our clients are not very suitable for investing in cryptocurrencies. We recognize To high-level speculation in this area.”
To quote Jason Pride, Chief Investment Officer of GlenMed Private Wealth, said: “Cryptocurrencies are highly volatile, and we often see that when stocks sell off, so does Bitcoin, which means It is not a good portfolio diffuser.” He further described:
Our position with customers is the 10-foot principle: stay away from it. I don’t think the Federal Reserve and other regulators are champions of the current structure of the cryptocurrency market.
Tom Jessop, head of digital assets at Fidelity, pointed out that we are still in the early stages of cryptocurrency development. “We call Bitcoin an ideal store of value, and due to extreme turbulence, Bitcoin’s development is still in adolescence. Some investors are willing to accept this volatility because they see Bitcoin as a long-term risk-taking opportunity.” Jessop (Jessop) recently stated that we will continue to see Bitcoin adoption at an “accelerated pace”.
What do you think of these asset managers’ comments on Bitcoin and cryptocurrency investments? Let us know in the comments section below.
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