BNY Mellon Embraces Crypto, But One of Its Units Isn’t So Sure
- Insight Investment says price swings, low liquidity are risks
- Bitcoin can be harder to evaluate than gold: FX solutions head
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BNY Mellon says it’s the first global bank to allow clients to hold, transfer and issue digital currencies. But one of its own asset management units isn’t so sure about Bitcoin.
Bitcoin, the largest cryptocurrency, may not be suitable for most institutional investors because of high volatility, low liquidity, governance challenges and ESG risks, according to Insight Investment, which manages about $1 trillion. Slow and expensive transactions may also hinder widespread adoption, according to Francesca Fornasari, head of currency solutions.