Bitcoin volatility still a concern for CEO of BNY Mellon subsidiary
Francesca Fornasari believes that Bitcoin may not be suitable for most institutional investors.
Despite BNY Mellon’s entrance into Bitcoin (BTC), the CEO of one of the company’s asset management units is still sceptical about major risks associated with the world’s largest cryptocurrency.
Francesca Fornasari, head of currency solutions at BNY Mellon’s subsidiary Insight Investment, believes that Bitcoin may not be suitable for most institutional investors due to extreme volatility, low liquidity, governance issues and environment-related risks.
In a Tuesday Bloomberg interview, Fornasari said that Bitcoin can be more difficult to evaluate than gold due to its massive price swings.
you should be aware of the fact that if you’re investing in Bitcoin, there’s a whole number of different factors that are going to affect the value of your investment, that have nothing to do with inflation, she said.
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