In Science and Space: False beliefs and a fear of the unknown, according to Jamie Coutts, a crypto market analyst for Bloomberg Intelligence, have prevented traditional portfolio managers from making cryptocurrency investments.
According to Coutts, these asset managers held equities in companies like Amazon and Facebook, which were not profitable for the first few years and didn’t appear to have any inherent worth. Facebook also didn’t have any earnings in its early years.
Speaking to Cointelegraph over the weekend at the Australian Crypto Convention, Coutts argues that the myth that blockchains have no fundamental value has persisted for a long time.
“But they may perceive there’s a community worth right here, that the community is rising, that the worth of the asset accrues from how many individuals are utilizing the merchandise.”
Cryptocurrency became regulated “the second” it became a taxable item, thus Coutts claimed “there isn’t really a regulatory risk” and that all you had to do was “confide on the tax authorities in whatever country you’re in.”
Coutts suggested that it may instead be “just the fear of the unknown,” adding that asset managers passing on the opportunity to educate themselves on cryptocurrencies is a squandered opportunity. Coutts advised those who are afraid to invest in cryptocurrencies to look past the market volatility and focus on what they actually offer to the table.
“The best thing we can do is understand the global trends that are developing in technology advancement and debasement, which crypto is at the crossroads of. This provides cryptocurrency some momentum as an asset class that has to be considered for allocation. The Picket Group, a Swiss financial management company, recommended cryptocurrency investments last month “despite the current trade uncertainty.”
Despite acknowledging that cryptocurrency is “an asset class that we can’t ignore,” Picket Group CEO Tee Fong doesn’t think there is “a place for personal bankers and for personal financial institution portfolios.”
Others advise institutional investors to remain enthusiastic about investments related to cryptocurrencies, regardless of the state of the market. Henrik Anderson, the chief financial officer of Apollo Capital, told Cointelegraph on September 14 that even if institutional interest has been slow to pick up steam, there are many people waiting on the sidelines to time the market.
Anderson is upbeat about the future since “many of the biggest banks right here in Australia have already shown an interest in digital property,” with “ANZ and NAB” choosing to focus on “stablecoins and traditional asset tokenization rather than crypto investments specifically.”