Gerald Moser, chief strategist at financial conglomerate Barclays, believes Bitcoin is unsuitable for institutional investors. It is reported by Financial News.
Bitcoin’s volatility will prevent pension funds and other large investors from investing in cryptocurrency on a long-term basis, Moser said.
“Investors will simply exclude cryptocurrency from the portfolio with the next optimization,” he said.
According to Moser, bitcoin’s high profitability is driven by retail buy-in rather than institutional investors.
The strategist also stated that Bitcoin is not suitable for risk diversification. As the reason, the specialist named the absence of a pronounced correlation between the cryptocurrency and any asset since 2016.
Note that in 2020, public companies acquired more than 1 million BTC (5.57% of the cryptocurrency market supply).
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