Swiss Wealth Manager Pictet Claims Crypto Has No Future in Private Banking

According to Pictet Group, there is currently no place for cryptocurrency in private banking.

Even though a growing number of private banks, such as Julius Baer, LGT, Goldman Sachs, and others, are now offering cryptocurrency to their clients, the Swiss wealth manager Pictet Group thinks that the adoption may be a little too hasty at the moment. As a result, Pictet is now advising investors to avoid purchasing cryptocurrency in light of the current instability in the market.

The CEO of the company, Tee Fong Seng, told Bloomberg:

“Crypto will be an asset class that we cannot ignore, but today, I don’t think there is a place for private bankers and private bank portfolios.”

The private bank official went on to explain that patterns in the cryptocurrency market over the years have demonstrated that investing in digital currencies may provide a significant amount of profits but that they can also quickly drop in value and make investors lose a substantial amount of money.

“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?”

Since reaching their all-time high in November of 2021, the value of the cryptocurrency markets has dropped by two trillion dollars. This steep decline can be attributed to several high-profile failures of digital assets and associated businesses, such as the hedge fund Three Arrows, the infamous crash of Terra LUNA/TerraUSD, and the downfall of cryptocurrency lender Celsius Network.

However, some venture capital firms and financial institutions are increasingly interested in investing in digital currencies. However, cryptocurrency continues to be an asset with high volatility for making a long-term bet on virtual assets.