Although Bank of New York Mellon entered the Bitcoin space (Bitcoin), the CEO of one of the company’s asset management departments is still skeptical about the major risks associated with the world’s largest cryptocurrency.
Francesca Fornasari, head of currency solutions at Insight Investment, a subsidiary of Bank of New York Mellon, believes that Bitcoin may not be suitable for most institutional investors due to extreme volatility, low liquidity, governance issues, and environmental-related risks.
In a Bloomberg interview on Tuesday, Fornasari Say Due to large price fluctuations, Bitcoin may be more difficult to assess than gold, which further complicates its possible response in an inflationary environment.
“In the final analysis, you should be aware of the fact that if you invest in Bitcoin, there are many different factors and considerations that will affect the value of your investment, which is a hedge against inflation or inflation,” she said.
Forex experts say that Bitcoin’s slow and expensive transactions may be the main obstacle to mainstream adoption. “We are skeptical of Bitcoin’s alternative ability as a means of payment,” Fornasari said.
However, according to Fornasari, Insight Investment is optimistic about altcoins or other cryptocurrencies other than Bitcoin, and expects such digital assets to increase, especially those that address transaction speed and cost, energy usage, and volatility. Of digital assets.
Insight Investment is one of the world’s largest asset management companies, managing approximately US$1 trillion in assets.After the American banking giant, the company has been a subsidiary of the Bank of New York Mellon since 2009 obtain It comes from the Lloyds Banking Group.
Although the Bank of New York Mellon actively entered the bitcoin field after announcing the launch of bitcoin, the company is still skeptical of bitcoin. Plan to custody and transfer Bitcoin And other cryptocurrencies as asset managers in February this year.The company also argued that the poor performance of one of the exchange-traded funds was due to Caused by lack of exposure For companies that invest in Bitcoin.