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Pictet Group tells private banks to stay away from crypto

Amid the current market meltdown, Swiss wealth management firm Pictet Group is cautioning private banks against investing in crypto, Bloomberg News reported Aug 4.

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

“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 saw one of the most devastating turmoils over the past few months, triggered by the collapse of the TerraUSD (USDTC). Terra’s downfall created a serious liquidity crisis among several crypto lenders that led to the bankruptcy of crypto hedge fund Three Arrows Capital, Celsius Network and Voyager Digital.

Other lenders battling liquidity issues are working on restructuring plans while some, like Vauld and Zipmex, have sought bankruptcy protection to figure out a solution. Additionally, the past few weeks have seen a slew of hacking exploits with hundreds of millions lost.

The crypto market capitalization lost $2 trillion between November 2021 and June 2022.

While private banks shunned crypto a few years ago, with the market skyrocketing since 2020, some banks have warmed up to it. In May, Swiss bank Julius Baer Group Ltd announced that it will offer crypto services to wealthy clients. Last year, Citibank said that it would develop crypto-related services due to growing client interest.

Tee said:

“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 is scared of crypto

According to Nanda Ivens, chief marketing officer at Indonesian digital trading platform Tokocrypto, venture capital funds and institutions are displaying more interest in the crypto space, despite the recent turmoil, Bloomberg reported. For instance, Indonesia-based crypto fund Cydonia Capital raised $100 million

As an example, he cited Indonesian crypto fund Cydonia Capital recently raised $100…

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