Bitcoin is one of the topics that has attracted the most attention from large traditional financial institutions. And it is that, since last year, with the massive entry of investors to the crypto market, and no large or small bank can afford to ignore BTC. This is why we have been hearing lately about reports and comments from large investment banks about cryptocurrencies. This time it is the turn of Citi, a bank that sees a good investment in Bitcoin, but not the best.
Cryptocurrencies are a good investment
For large global investors, Bitcoin and the crypto market are inescapable realities. And it is that, behind the growth in the price of Bitcoin there is a truth that not even the biggest crypto skeptics can deny, and that is that the cryptocurrency has aroused enormous interest, and therefore a great demand.
This is exactly what David Bailin, Manager and Chief Investment Officer of Citi Private Bank, says, the wing of Citibank dedicated to managing the wealth of its wealthiest clients. Thus, Bailin assures that he has no doubts that Bitcoin will have a positive performance in the future due to the enormous demand that exists for the cryptoactive. What makes the virtual currency a good investment at this time in the financial market.
«I tell people that there is no doubt that I believe that Bitcoin is going to do well because of the level of interest it arouses around the world». Bailin commented, despite which he clarified that BTC terrifies him as a potential investment at a fundamental level. Especially due to the way in which institutional investment is being carried out in the crypto market, through investment funds that he considers “very inefficient.”
Citi sees better opportunities
Thus, in commenting on the way investments in Citi are carried out, Bailin spoke of the divide between “core” and “opportunistic” investments for the bank. While the centrals are traditional and diversified investments that occupy 85% of the portfolio of their clients. Opportunistic investments like Bitcoin are high risk and only have exposure in the remaining 15% of the portfolio.
At this time, Bailin says that it is working on finding mechanisms so that its clients can easily invest in Bitcoin. Responding to the demand that exists among Citi clients for investments in cryptocurrencies. Despite this, Bailin clarifies that, although BTC is a good investment, there are other technologically disruptive sectors with greater long-term potential. Including in that list big data, renewable energies, satellite technology, among others:
«These kinds of gigantic and unstoppable trends, as we call them, are really wonderful investment opportunities, which are probably in the long term, or in my opinion definitely in the long term, much better than Bitcoin. They can be identified, they can be quantified, you can find companies that are carrying them out and you can see that the size of the market we are talking about is extraordinary».