The CEO of a hedge fund said that cryptocurrencies are “pure trading tools”

Not all hedge fund managers sell cryptocurrencies because Luke Ellis, CEO of Man Group, likens cryptocurrencies to tulip bulbs.

Ellis in an interview with the Financial Times Comment The utility of encryption comes from its volatility, thereby presenting asset classes as viable trading opportunities. The CEO of the world’s largest publicly traded hedge fund stated:

“If you look at cryptocurrency as a whole, it is a pure trading tool. It has no intrinsic value. This is a tulip bulb.”

Despite being an outdated comparison, cryptocurrency and Bitcoin (Bitcoin),especially Often compared to “tulip mania” — In the Netherlands, the price of tulip bulbs rose exponentially for a short period of time before finally plummeting.

Ellis said that given the price volatility of cryptocurrencies, his $127 billion hedge fund is happy to trade cryptocurrencies because there is liquidity to support long or short bets. For Ellis, Man Group’s participation in cryptocurrency does not constitute an endorsement of cryptocurrency as an asset class.

According to the CEO of Man Group, this hedge fund does not offer crypto as an “asset management product,” but it is one of more than 800 markets where the company trades.

Commenting on popular crypto investment arguments, Ellis believes that inflation is the main reason for the increasing popularity of cryptocurrencies in asset portfolios.

In fact, Bitcoin supporters say that BTC provides a hedge Inflation and currency devaluation, Especially in the current global economic recovery efforts, as part of the efforts to respond to the COVID-19 pandemic.

related: Hedge funds see the decline in the crypto market as an investment opportunity

As Ellis made the above remarks, more and more hedge funds became active in the field of crypto investment.As early as June, Cointelegraph reported on U.S. hedge fund managers More than 10% of assets are expected to hold cryptocurrencies.

Bitcoin and cryptocurrency markets have fallen by more than 50% since May Determined as an investment opportunity For big money players who expect to return to parabolic price movements before the end of the year.