Amid the present market meltdown, Swiss wealth administration agency Pictet Group is cautioning private banks towards investing in crypto, Bloomberg News reported Aug 4.

Speaking on a panel on the Bloomberg Asia Wealth Summit in Singapore, CEO of Pictet Group’s Asia wealth administration arm Tee Fong Seng stated:

“Crypto 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.”

The crypto market noticed one of the devastating turmoils over the previous few months, triggered by the collapse of the TerraUSD (USDTC). Terra’s downfall created a severe liquidity disaster amongst a number of crypto lenders that led to the chapter of crypto hedge fund Three Arrows Capital, Celsius Network and Voyager Digital.

Other lenders battling liquidity points are engaged on restructuring plans whereas some, like Vauld and Zipmex, have sought chapter safety to determine an answer. Additionally, the previous few weeks have seen a slew of hacking exploits with a whole lot of hundreds of thousands misplaced.

While private banks shunned crypto just a few years in the past, with the market skyrocketing since 2020, some banks have warmed up to it. In May, Swiss financial institution Julius Baer Group Ltd announced that it’s going to supply crypto providers to rich purchasers. Last yr, Citibank said that it could develop crypto-related providers due to rising consumer curiosity.

Tee stated:

“If you look at the volatility for the last two years, you can make a lot of money, you can lose a lot of money.

The question is, when do we bring the clients into the picture?”

Not everyone seems to be terrified of crypto

According to Nanda Ivens, chief advertising officer at Indonesian digital buying and selling platform Tokocrypto, enterprise capital funds and establishments are displaying extra curiosity within the crypto house, regardless of the latest turmoil, Bloomberg reported. For occasion, Indonesia-based crypto fund Cydonia Capital raised $100 million

As an instance, he cited Indonesian crypto fund Cydonia Capital lately raised $100 million, Ivens stated.

“There is a lot of interest for Web3 projects, especially when there are positive, good deal flows coming through those Web3 venture capital funds.”

But nonetheless, most stay cautious of the crypto market and its prospects, regardless of the latest rallies. Rich Teo, co-founder and CEO of Paxos Asia stated he’s “bearish” on crypto and expects extra “deleveraging.”

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