Tech

Cryptocurrencies have no place in private banking right now, says Pictet


Pictet Group, a Swiss asset manager, is cautiously anti-crypto investments amid recent industry turmoil.

Pictet Group, Swiss asset manager, is warning against crypto investments amid recent industry turmoil.

“Cryptocurrencies 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,” said Tee Fong. Seng, chief executive officer at the Geneva-based company’s Asian asset management arm, said on a panel at Bloomberg Asia Wealth Summit in Singapore on Thursday.

The crypto industry has seen a downturn this year amid collapse in valuations, the failure of hedge fund Three Arrows Capital and others, and numerous attacks by hacker. Between Bitcoin’s November peak and late June, $2 trillion was wiped off the combined market value of crypto assets.

Bank Giants shunned crypto for years – JPMorgan Chase & Co. CEO Jamie Dimon called Bitcoin a “scam” in 2017.

But with the rise in wealth over the past three years, some are starting to change their stance. Most recently, Julius Baer Group Ltd. said it was working to offer digital asset services to its wealthy clients, while Fidelity Investments was preparing to launch a product that would allow Bitcoin invest in a retirement account at work. Citigroup Inc. and Morgan Stanley have also started helping wealthy clients bet on cryptocurrencies.

However, token trading is still challenging for many people.

“If you look at the volatility over the last two years, you can make a lot of money, you can lose a lot of money,” Tee said, adding that Pictet has a team that oversees the market. “The question is when do we bring the customer into the picture?”



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