Insight Investment: Bitcoin unlikely to become a means of payment

Most institutional investors do not invest in Bitcoin due to high volatility and low liquidity, as well as issues with asset management and ESG risks. In a conversation with Bloomberg, Francesca Fornasari, head of currency solutions at Insight Investment, said.

“We are skeptical about Bitcoin’s ability to become a means of payment,” she added.

Fornasari stressed that launching custodial services for digital assets is a timely area of business development, as they will become a more important element of the investment landscape over time.

Insight Investment expects a growing number of cryptocurrencies that will “challenge Bitcoin.” The firm’s analysts believe these assets will address issues of value and speed of processing transactions, volatility, and high energy consumption.

“Ultimately, you must understand that if you invest in Bitcoin, there are a whole range of different factors and considerations that will affect the value of your investments. They have nothing to do with inflation or hedging inflation,” Fornasari said.

The asset manager with £707,7 млрд (~$980 млрд) Insight Investment is a “subsidiary” of the financial holding company Bank of New York Mellon (BNY Mellon). In February the latter announced the launch of custodial services for Bitcoin.

In May BNY Mellon said that will establish a Digital Innovation Hub structure in Ireland, which will allow clients to hold, transfer and issue digital assets.

As previously noted, Canadian investor and Shark Tank star Kevin O’Leary said that companies and funds are shying away from investments in digital gold due to ESG-related concerns.

Follow ForkLog news on VK!