Pictet Group tells non-public banks to steer clear of crypto

by Cryptospacey

Amid the present market meltdown, Swiss wealth administration agency Pictet Group is cautioning non-public banks towards investing in crypto, Bloomberg Information reported Aug 4.

Talking on a panel on the Bloomberg Asia Wealth Summit in Singapore, CEO of Pictet Group’s Asia wealth administration arm Tee Fong Seng stated:

“Crypto will probably be an asset class that we can’t ignore, however as we speak I don’t assume there’s a place for personal bankers and for personal financial institution portfolios.”

The crypto market noticed one of the devastating turmoils over the previous few months, triggered by the collapse of the TerraUSD (USDTC). Terra’s downfall created a critical liquidity disaster amongst a number of crypto lenders that led to the chapter of crypto hedge fund Three Arrows Capital, Celsius Community and Voyager Digital.

Different lenders battling liquidity points are engaged on restructuring plans whereas some, like Vauld and Zipmex, have sought chapter safety to determine an answer. Moreover, the previous few weeks have seen a slew of hacking exploits with tons of of hundreds of thousands misplaced.

Whereas non-public banks shunned crypto just a few years in the past, with the market skyrocketing since 2020, some banks have warmed as much as it. In Might, Swiss financial institution Julius Baer Group Ltd introduced that it’ll supply crypto providers to rich purchasers. Final yr, Citibank stated that it could develop crypto-related providers as a consequence of rising shopper curiosity.

Tee stated:

“When you have a look at the volatility for the final two years, you can also make some huge cash, you possibly can lose some huge cash.

The query is, when will we carry the purchasers into the image?”

Not everyone seems to be terrified of crypto

Based on Nanda Ivens, chief advertising officer at Indonesian digital buying and selling platform Tokocrypto, enterprise capital funds and establishments are displaying extra curiosity within the crypto area, regardless of the current turmoil, Bloomberg reported. As an illustration, Indonesia-based crypto fund Cydonia Capital raised $100 million

For instance, he cited Indonesian crypto fund Cydonia Capital lately raised $100 million, Ivens stated.

“There’s lots of curiosity for Web3 tasks, particularly when there are constructive, whole lot flows coming by means of these Web3 enterprise capital funds.”

However nonetheless, most stay cautious of the crypto market and its prospects, regardless of the current rallies. Wealthy Teo, co-founder and CEO of Paxos Asia stated he’s “bearish” on crypto and expects extra “deleveraging.”

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