Australian Fund Managers vs General Population – Who’s More Optimistic About Crypto?

Bitcoin recently broke the all-time high. In a country like Australia, where 91.4% of respondents to a survey stated that they were aware of at least one cryptocurrency, opinions are naturally split.

General Public Optimistic Despite Some Bearish Asset Managers

Although some investment management firms such as the Pendal Group are optimistic on Bitcoin – with management at the firm considering Bitcoin a better investment than government bonds, other financiers have a less optimistic approach.

“Bitcoin is a cockroach that exists. They can’t ban it out of existence.

We think ultimately that government bonds will turn into a dead asset class, so we now have to imagine what it will be like for other assets classes when bonds are no longer relevant to hold in a portfolio.”

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Geoff Wilson – the chairman and founder of Wilson Asset Management – stated that despite being enthusiastic about blockchain technology, he did not see Bitcoin in the same light, considering it a risky investment.

“As an investment, it is extremely volatile and appears to be easily manipulated. Thus it is not a prudent investment, it is not strategic for us as an investor and in our view, it is not sustainable.”

Other fund managers were even more bearish on Bitcoin and cryptocurrencies in general, with one Aussie financier saying that when wanting a good punt, he preferred to visit a casino.

Meanwhile Jamie Hannah – the deputy head of investments at VanEck – has found a middle-of-the-road-solution by listing a Bitcoin exchange-traded note in Germany. This allows investors to purchase Bitcoin-related funds without having to invest in crypto themselves.

This decision came following a noted increase in interest by clients of the firm, even when advised against it – after all, 2 out of 5 Aussies consider Bitcoin a good investment, and over 18% are in possession of crypto tokens.

It’s worth noting however that investors such as JPMorgan and Goldman Sachs have also been dismissive of crypto in the past – and had a change of heart. Like any investment, crypto may have its detractors – but only time will tell who is right.