Fear of the unknown holds back tradfi investors from crypto
Categories: Crypto News
'Fear of theunknown' holds back tradfi investors from crypto — analyst
JamieCoutts, crypto market analyst for Bloomberg Intelligence, argues that “falsehoods”and “fear of the unknown” is what has been holding backtraditional portfolio managers from investing in cryptocurrency. AustralianCrypto Convention over the weekend, Coutts argues there has been an ongoing “falsehood”that “there is no intrinsic value in blockchains.”
“Theseasset managers own stocks, like Amazon and Facebook which for the first severalyears these companies had no earnings,” explained Coutts, adding that Facebookin its infant stages “didn’t have profit or seen to have any intrinsic value:”
Couttsbelieves that “although not all blockchains are cash generative assets,including Ethereum,” there is certainly intrinsic value there. Coutts said “thereisn’t really a regulatory risk,” as crypto became regulated “the moment”it became a taxable item that you have to “disclose to the tax authoritiesin whatever jurisdiction you’re in.”
Instead,Coutts said it could be “just the fear of the unknown,” adding thatasset managers ignoring or choosing not to educate themselves on cryptocurrencyis a missed opportunity. Coutts suggested that those hesitant to invest in cryptocurrencyshould look beyond the market volatility and focus on what cryptocurrencyactually brings to the table.
“The bestthing that we can do is understand the global trends that are taking place […]debasement and technological innovation, which crypto is at the intersectionof. That provides the wind behind the sails of crypto as an asset class thatshould be considered for some allocation.”
Otherssuggest that institutional investors remain interested in crypto-relatedinvestments despite the market conditions.Chief investment officer of ApolloCapital, Henrik Anderson, told on Sept. 14 that although institutional interesthas been slow in gaining momentum, there are many waiting on the sidelines,timing the market.
Anderson isoptimistic about the future, given that we’ve already “seen several of themajor banks here in Australia taking an interest in digital assets,” with “ANZand NAB” choosing to focus on “stablecoins and traditional assettokenization rather than crypto investments specifically.”