- Though Bitcoin with soaring price has attracted several fund managers, Australian fund managers are still skeptical
- Several Australian investors are concerned with the real store of value of Bitcoins
- Unlike institutional investors, the retail investors in Australia are quite confident in the crypto space
On Wednesday, Bitcoin, the most famous cryptocurrency, crossed the level of $20,000, recording a new all-time high price. Since then, the price of Bitcoin (BTC) has continued to rise, and at press time, it is trading at $22,927.09. Despite the soaring price of Bitcoin (BTC), attracting several Australians, the nations fund managers are yet to be sold on the coin designed by Satoshi Nakamoto as a legitimate investment class despite
Bitcoin is on the radar of traditional investors
This year, it is observed that Bitcoin is firmly on the radar of traditional investors. Observing the nascent asset class, several Australian fund managers are found skeptical. According to some fund managers, compared with traditional equities, Bitcoin seems to be a gamble. According to Geoff Wilson, the chairman and founder of Wilson Asset Management, the underlying Bitcoin’s blockchain technology could be the future of the payments systems, still, he was concerned regarding the token itself.
Is BTC not a prudent investment?
According to Wilson, the extremely volatile nature and appears to be easily manipulated, Bitcoin is not a prudent investment. Showing his point of view, Wilson also explained that Bitcoin is not strategic for them as an investor. According to Jamie Hannah, the deputy head of investments at VenEck, the global investment manager, Bitcoin has attracted the fund, especially from financial planners asking on behalf of their clients. Despite the interest, Hannah highlights Bitcoin as a problematic digital asset, as in terms of a reputable asset class, the token is the exact opposite. Hannah also explained that it is a matter of concern about whether BTC has any real store of value in the long run.
Retail investors are not skeptical as institutional investors
Australian fund managers are doubtful to enter the crypto space, and some are considering BTC as a token with no intrinsic value and speculative asset, and some are comparing it with gambling. According to a survey report from Independent Reserve, Australia’s largest crypto exchange, it is found that around 18.4% of the citizens of the country are holding some type of cryptocurrencies. If we are concerned about awareness, it is found that 91.4% of the country’s residents have heard at least one type of such tokens. However, in Q3 2020 such Australian investors stated that they were either breaking even or better on their investments.
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