Amid Current Market Collapse, Swiss Asset Manager Pictet Group Warns Private Banks Against Investing in Cryptocurrencies, Bloomberg News report August 4th.
Speaking at a panel at the Bloomberg Asia Wealth Summit in Singapore, Thi Fong Sen, CEO of Pictet Group’s Asia Wealth Management division, said:
“Cryptocurrencies will become a non-negligible asset class, but I don’t think there is a place for private bankers and private bank portfolios today.”
The cryptocurrency market has seen one of the most devastating turmoil in recent months caused by the collapse of TerraUSD (USDTC). Terra’s downfall triggered a severe liquidity crisis among several crypto lenders, leading to the bankruptcies of crypto hedge funds Three Arrows Capital, Celsius Network and Voyager Digital.
Other lenders battling liquidity problems are working on restructuring plans, and some banks, like Bold and Zipmex, are seeking bankruptcy protection to find solutions. Additionally, there have been a number of hacking his exploits in the past few weeks that have resulted in the loss of hundreds of millions of dollars.
Private banks shied away from cryptocurrencies a few years ago, but as the market surges from 2020 onwards, some banks are up for it. May, Swiss bank Julius Baer Group Ltd announced To provide crypto services to wealthy clients. Last year, Citibank announced it would develop crypto-related services due to growing customer interest.
Tee said:
“If you look at the volatility of the last two years, you can make a lot of money and you can lose a lot of money.
The question is when to photograph the client. ”
Not everyone is afraid of cryptocurrencies
Despite the recent turmoil, venture capital funds and institutions are showing more interest in the crypto space, according to Nanda Ivens, chief marketing officer of Indonesian digital trading platform Tokocrypto, Bloomberg reports. We are reporting. For example, Indonesia-based crypto fund Cydonia Capital has raised his $100 million.
As an example, Ivens said he cited the recent $100 million funding raised by Indonesian crypto fund Cydonia Capital.
“Highly Interested” Web3 Projects, especially if there is positive and good deal flow from their Web3 venture capital fund. ”
However, despite the recent rise, most people are still wary of the cryptocurrency market and its prospects. Paxos Asia co-founder and CEO Rich Teo has said he is “bearish” on cryptocurrencies and expects more “deleveraging”.
