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Bitcoin’s credentials as a long-term asset are no longer really up for debate. In fact, 2020-2021 proved to be more than one ATH year for the world’s largest cryptocurrency.

With Bitcoin trading at around $ 58,000 at the time of writing, many in the community are delighted with the bullish sentiment of the larger market.

However, T. Rowe Price’s CEO, William J. Stromberg, is not among these delighted people.

Bitcoin Investment

When asked in an interview whether T. Rowe Price will start investing in cryptocurrencies, Stomberg replies, “We are in the early days.”

The manager of the Baltimore-based firm added:

“Some companies have tried to put together only a handful of products where you can buy and own cryptocurrencies. It’s really early, we’re here in the early days. So I expect this to move at a good pace. But it takes years for it to really emerge. ”

Stromberg is right. Although the market cap of the cryptocurrency has risen above $ 1 trillion, it’s still early days. As the asset is expected to rise to a valuation of $ 100,000, Bitcoin’s long-term bull cycle, Tesla and MicroStrategy have come into play, but the mainstream market has not yet been well and truly dizzy.

It should be noted, however, that Stromberg acknowledges that, regardless of his past suspicions, he has begun to include crypto in his balance sheets. In fact, the market value of these “handful” firms is worth billions of dollars.

Some of the Categories

JP Morgan Chase, a global leader in financial services, falls into this category. In 2017, JP Morgan CEO Jamie Dimon said that Bitcoin was a fraud that would eventually explode. In another interview, he claimed that “he couldn’t care less about Bitcoin”. Still, in late 2019, JP Morgan launched the first US bank-backed cryptocurrency to transform the payments business.

Morgan Stanley, BNY Mellon, Paypal, and others eventually jumped on the vast majority of them into the crypto space.

Another interesting development has emerged from reports in which SNB chief Thomas Jordan commented on the liquidity of the cryptocurrency market. “Cryptocurrencies are not liquid enough for the bank to own as one of their investment assets,” Jordan said.

Tesla’s Move

The timing of such a statement is quite unusual, given Tesla’s recent efforts to prove the opposite. Tesla sold 10% of its total Bitcoins to prove the liquidity side of Bitcoin, the world’s largest crypto asset.

Compared to liquidity and other assets, the last situation can be discussed with the explanation of the above-mentioned SNB on the risks related to Bitcoin. If the bank in question is genuinely interested in reducing risk through diversification, it can start by including Bitcoin.

As can be seen from above, Bitcoin as an asset is actually the least “risky” in terms of risk-adjusted returns.

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