Bitcoin (BTC) is an unattractive investment asset, said Gerald Moser, chief market strategist at Barclays Private Bank (Barclays), a provider of banking and investment services. The British media “Financial News” reported.
He argues that it is doubtful that large investors such as pension funds will benefit from adding BTC to their portfolios, as price volatility is large and returns are difficult to predict.
In the BTC market, where prices soared from 2020 to 2021, unlike the 2017 crypto asset (virtual currency) bubble, which was dominated by individual investors, companies and institutional investors are believed to have led the price increase. Is strong.
The pension fund Moser mentioned as an example is a representative institutional investor who is also regarded as important in the stock market and bond market. Sonnenshein, the new CEO of Grayscale, said of his BTC mutual fund (GBTC), “We are beginning to see new entrants not only from existing player hedge funds, but also from pension funds and university endowments. There is. ” As a concrete testimony of the business operator, it is revealed that the interest of pension funds is increasing.
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In this regard, Moser argues that BTC’s performance is still largely dependent on individual investors. It is said that individual investors who participate in the bull market, which may or may not continue, are driving the price movement, not institutional investors who make long-term investments. He points out that the outlook for the market is also highly uncertain.
Moser also compares BTC and stocks. He pointed out that BTC’s performance has been lower recently, even when stock prices have been adjusted globally since 2015. Investors can benefit from gold and bonds in these situations, but they will suffer losses if they invest in BTC.
He pointed out that the BTC price fluctuates according to the stock price, and that BTC is not a rational means of long-term investment, and that the price hike has a strong bubble side.