Jamie Couts, crypto market analyst at Bloomberg Intelligence, argues that “lies” and “fear of the unknown” are preventing traditional portfolio managers from investing in cryptocurrencies.

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Speaking to Cryptooshala during the Australian Crypto Convention over the weekend, Coutts argues that there is a “lie” going on that “there is no intrinsic value in the blockchain.”

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“These asset managers own stocks like Amazon and Facebook” […] These companies previously had no earnings for many years,” Coutts explained, adding that Facebook in its early stages “was not a profit.” […] Or an intrinsic value has been observed:”

“Yet they can understand that there is a network value here, that the network is growing, that the value of the asset is how many people are using the products.”

Coutts believes that “although not all blockchains are cash-producing assets, including Ethereum,” there certainly is intrinsic value.

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However, the Bloomberg analyst said he can’t quite put his finger on why there’s been hesitation in adoption of the cryptocurrency, the reason being a lack of regulation:

“Regulation cannot be one of them. Let me just repeat it again. Regulation is always a concern, but BTC is regulated.”

“There’s really no regulatory risk,” Coutts said, “because the moment crypto was regulated” it became a taxable item that you’d have to disclose to the tax authorities in “whatever jurisdiction you’re in.”

Instead, Coutts said it could be a “fear of the unknown”, adding that asset managers ignoring or choosing not to educate themselves on cryptocurrencies are a missed opportunity.

Coutts suggested that those hesitant to invest in cryptocurrency should look beyond market volatility and focus on what the cryptocurrency actually brings to the table.

“The best thing we can do is to understand the global trends that are happening […] Debate and technological innovation, which is at the crossroads of crypto. This provides the wind behind the sails of crypto as an asset class that must be considered for some allocation.”

Jamie Couts speaking at the Australian Crypto Convention on September 17th

Last month, the Swiss wealth management group Pickett Group gave advice Against crypto investing “amidst the recent industry turmoil.”

Pickett Group CEO Tee Fong acknowledged that crypto is “an asset class that we cannot ignore” although it does not think there is “a place for private bankers and private bank portfolios.”

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Others suggest that institutional investors are interested in crypto-related investments regardless of market conditions.

Apollo Capital’s chief investment officer, Henrik Andersen, told Cryptooshala on September 14 that although institutional interest has been slow to gain momentum, many are waiting on the timing of the market.

Anderson is optimistic about the future, noting that we have already seen “a number of major banks in Australia taking interest in digital assets,” with “ANZ and NAB” focusing on “stablecoins and traditional asset tokens.” instead of CryptoKitties”. investment in particular. ,