Barclays strategist says bitcoin is unfit for institutional investors

Barclays’ chief strategist Gerald Moser believes bitcoin is unfit for institutional investors. This is reported by Financial News.

According to Moser, bitcoin’s volatility will prevent pension funds and other large investors from investing in the cryptocurrency on a long-term basis.

“Investors will simply exclude cryptocurrency from their portfolios at the next round of optimisation,” he noted.

According to Moser, bitcoin’s high returns are driven somewhat more by retail participation than by institutional investment.

The strategist also stated that bitcoin is not suitable for diversification. As a reason, he cited the lack of a pronounced correlation of the cryptocurrency with any asset since 2016.

As noted by analysts at Ruffer Investment, bitcoin is at the beginning of a long process of institutional adoption.

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