Swiss wealth manager said crypto “have no place in private banking”

The recent bitcoin market decline has prompted global financial institutions to adopt a more cautious stance toward the new asset class. One wealth manager advises against investing until the situation stabilises.

On August 4, Bloomberg’s Krystal Chia and Suvashree Ghosh wrote that the Swiss wealth management business Pictet Group recognised crypto’s expanding significance but emphasised that cryptocurrencies had no place in private banking, at least for the time being.

Crypto is here to stay, but private banking is a long way off

In a panel discussion at the Bloomberg Asia Wealth Summit in Singapore, Tee Fong Seng, the head of the firm’s Asia wealth management division, stated:

“Cryptocurrency will be an asset class that we cannot ignore, but I do not believe that private bankers and private bank portfolios have a role in this market at this time.”

In addition, Tee warned about the volatility in the crypto industry during the last several years, saying that the Pictet staff are closely monitoring the situation as it develops. 

The interest of wealth managers in crypto

BlackRock, a worldwide investment management firm, has teamed with Coinbase to provide its institutional customers with access to the Aladdin asset manager suite of products.

Finbold revealed in late July that 200-year-old asset management Schroders has acquired a minority position in New York-based crypto startup Forteus as part of its ambitions to expand blockchain research.

Ronald-Peter Stoeferle, a managing partner of financial management company Incrementum AG, said in early July that Bitcoin (BTC) had surpassed gold despite the adverse market. Long-term, he predicted that the most prominent cryptocurrency would become a less hazardous asset and ultimately a store of wealth.

Mary Rich, the new global head of digital assets for Goldman Sachs’ private wealth management business, revealed at the beginning of April that the firm would begin issuing Bitcoin investment vehicles.

Also Read: Ethereum Transactions Are Currently Cheaper Than December 2020

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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