A group of major fund managers have declared they have no intention of investing in Bitcoin, despite the digital currency’s spectacular rising inwards value throughout 2017. Bitcoin surged to an all-fourth dimension high of $19,343 on December xix per unit of measurement. The grouping includes Aviva Investors, Aberdeen Standard Life, Janus Henderson, Man Group, thou&G Investments too Schroders.
Speaking to Financial News, Paul O’Connor, portfolio managing director at Janus Henderson, said: ”Bitcoin remains a speculative, young fiscal instrument based on an experimental technology.” While Stuart Canning, enquiry analyst at G&thousand, added: “If the number of press articles too blog posts is an indicator of bubbles, and so there would live trivial contend. It has clearly become an investment for many, merely the charts demo it is a purely speculative asset.”
Although withal riding high, Bitcoin’second price took a striking final week dropping xiv% later on the South Korean judge minister Park Sang-ki announced that his regime were looking into formulating legislation that could brand cryptocurrency trading illegal. The proclamation coincided amongst raids on two of South Korea’s largest cryptocurrency exchanges, Bitthumb and Coinone.
The South Korean Office for Government Policy Coordination has since clarified the regime’s position. A statement given to South Korean intelligence way Yonhap read: “The proposed shutdown of exchanges that the judge government minister latterly mentioned is ane of the measures suggested by the justice ministry building” together with that “a authorities-broad determination” would live made later sufficient consultation.
South Korea is ane of the countries that has demonstrated a clear willingness to rein inwards the cryptocurrency nail. In September last yr, the South Korean Financial Services Commission said it intended to ban initial money offerings (ICO), a controversial means of crowdfunding for showtime-ups, whereby coin is raised past selling new virtual currencies inward telephone exchange for more established ones like Bitcoin together with Ethereum.
At present, cryptocurrencies remain for the nigh function unregulated past financial watchdogs, in addition to cannot live held past many exchange-traded funds nor traditional common funds. Late concluding yr property managing director Tobam launched an unregulated European Bitcoin fund aimed at attracting institutional investors, inwards an endeavour to convey cryptocurrency further into the mainstream fiscal organization.