'Fear of the unknown' holds back tradfi investors from crypto
Australian Crypto Convention
Modified Date:- Published Date:-Categories: Cryptocurrency
'Fear of theunknown' holds back tradfi investors from crypto
The AustralianCrypto Convention over the weekend, Coutts argues there has been an ongoing"falsehood" that "there is no intrinsic value inblockchains."
"Theseasset managers own stocks, like Amazon and Facebook which for the first severalyears these companies had no earnings," explained Coutts, adding that Facebook in its infantstages "didn't have profit or seen to have any intrinsic value."
However, theBloomberg analyst said he couldn't quite put his finger on why there was ahesitation to embrace cryptocurrency, ruling out lack of regulation asthe reason. Coutts said "there isn't really a regulatory risk" ascrypto became regulated "the moment" it became a taxable item thatyou had to "disclose to the tax authorities in whatever jurisdictionyou're in."
Instead,Coutts said it could be "just the fear of the unknown," adding thatasset managers ignoring or choosing not educate themselves on cryptocurrency isa missed opportunity. Coutts suggested that those hesitant to invest incryptocurrency should look beyond the market volatility and focus on whatcryptocurrency actually brings to the table.
"Thebest thing that we can do is understand the global trends that are taking placedebasement 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."
Last month,Swiss wealth management group Picket group advised against crypto investments"amid the recent industry turmoil."Picket Group CEO, Tee Fong,acknowledged that crypto is "an asset class that we cannot ignore"however doesn't think there is "a place for private bankers and forprivate bank portfolios."
Otherssuggest that institutional investors remain interested in crypto-relatedinvestments despite the market conditions.Chief Investment Officer of ApolloCapital, Henrik Anderson,on Sept. 14 that although institutional interest hasbeen slow in gaining momentum, there are many waiting on the sidelines, timingthe 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"ANZ and NAB" choosing to focus on "stablecoins and traditionalasset tokenization rather than crypto investments specifically."
While nothing is yet set in stone, he says it's likely that banks will look at crypto as an alternative to traditional investments like gold or treasury bills, or “traditional stablecoin-based systems”.
While Anderson acknowledges that "disaster" is still far from over, he is confident in the future of crypto: "I think there's going to be much greater demand for crypto and digital assets in general".