The asset-management arm of Bank of New York Mellon (BNY Mellon) believes that Bitcoin is not suitable for the portfolios of most institutional investors for a number of reasons. Bloomberg reports.<\/p>\n
The Insight Investment team, with AUM<\/span> of roughly $1 trillion, pointed to Bitcoin’s high volatility, low liquidity, governance issues and environmental risks.<\/p>\n According to Francesca Fornasari, head of FX solutions, slow and expensive transactions could also hinder broad adoption of Bitcoin. She was skeptical about digital gold serving as a means of payment.<\/p>\n Earlier, BNY Mellon announced the creation of a cryptocurrency custodian<\/a>. Fornasari noted that launching the service makes sense as digital assets become an increasingly important part of the investment landscape.<\/p>\n However, she expects growth in cryptocurrencies that can challenge Bitcoin in terms of transaction speed and cost, energy consumption and volatility.<\/p>\n Fornasari emphasised that evaluating the leading cryptocurrency is harder than gold because of sharp price swings.<\/p>\n “Ultimately, you must recognise that if you invest in Bitcoin, there is a whole range of different factors and considerations that will affect the value of your investment, having nothing to do with inflation or hedging it,” she concluded.<\/p>\n<\/blockquote>\n As previously reported, BNY Mellon acknowledged an incorrect bet by one of its funds on gold, instead of MicroStrategy shares, which had bought Bitcoin<\/a>.<\/p>\n Subscribe to ForkLog news on Telegram: ForkLog Feed<\/a> \u2014 all the news, ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":" The asset-management arm of Bank of New York Mellon (BNY Mellon) believes Bitcoin is not suitable for most institutional investors’ portfolios for a number of reasons.<\/p>\n","protected":false},"author":1,"featured_media":45337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1682,1138,167],"class_list":["post-45336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-bny-mellon","tag-opinions","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/45336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=45336"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/45336\/revisions"}],"predecessor-version":[{"id":45338,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/45336\/revisions\/45338"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/45337"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=45336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=45336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=45336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n