Pictet Group’s Asia division CEO Tee Fong Seng said at a summit that while the crypto asset class continues to mature, now might not be the time for private bankers to invest in the sector.
Even though crypto is an industry that is sure to survive, there are still some scary aspects. Recent events have made matters worse for crypto companies, with wild volatility adding to the problem.
Because of such concerns, Swiss wealth manager the Pictet Group is warning that this might not be the time to dive into crypto – at least not for now.
Crypto asset class can’t be ignored – but,
Remarks made At a panel at the sidelines of an a Bloomberg Pictet executive explains why Pictet is not interested in crypto at its summit in Asia
According to Tee Fong Seng, the CEO of Pictet’s Asia subsidiary, crypto’s growth as an asset class cannot be undone nor can it be “ignored” going forward. However, the company believes that crypto as it is – with some of the concerns above- does not have ‘a place’ in the private banking sector.
“Crypto will be an asset class that we cannot ignore, but today I don’t think there is a place for private bankers and for private bank portfolios,” he said.
The firm is, however, keen to monitor developments in the crypto market, as many others. This means clients will need to consider when they can offer services like trading.
He notes that a look at the crypto market’s performance over the past two years shows it’s possible to “make a lot of money.” But at the same time, with the huge volatility, it’s also very easy to “lose a lot of money,” he observed.
“What is the right time to bring clients into this picture?,” he posed as he pointed out that the Geneva-based asset manager had a team on the lookout for opportunities.
Despite concerns, mainstream companies are pushing into crypto
A few years ago, financial institutions and major mainstream companies were able to offer the best advice on crypto.
Many continue to sit on the fence, but many more have made a move – more so amid crypto’s last bull market. Today, global giants such as Fidelity Investments, BlackRock, Charles Schwab and Julius Baer Group have ventured into digital asset products – including crypto-focused exchange-traded funds, custody services and even trading to their clients.
This partnership between Coinbase & BlackRock, which is targeted at institutional clients, is a great example of growing interest in crypto exposure.
