Pictet Group tells private banks to stay away from crypto Pictet Group tells private banks to stay away from crypto

Pictet Group tells private banks to stay away from crypto

Pictet's Asia arm CEO Tee Fong Seng said that though cryptocurrencies have potential, now is not the right time for private banks to invest.

Pictet Group tells private banks to stay away from crypto

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Amid the current market meltdown, Swiss wealth management firm Pictet Group is cautioning private banks against investing in crypto, Bloomberg News reported Aug 4.

Speaking on a panel at the Bloomberg Asia Wealth Summit in Singapore, CEO of Pictet Group’s Asia wealth management arm Tee Fong Seng said:

โ€œCrypto will be an asset class that we cannot ignore, but today I donโ€™t think there is a place for private bankers and for private bank portfolios.”

The crypto market saw one of the most devastating turmoils over the past few months, triggered by the collapse of the TerraUSD (USDTC). Terra’s downfall created a serious liquidity crisis among several crypto lenders that led to the bankruptcy of crypto hedge fund Three Arrows Capital, Celsius Network and Voyager Digital.

Other lenders battling liquidity issues are working on restructuring plans while some, like Vauld and Zipmex, have sought bankruptcy protection to figure out a solution. Additionally, the past few weeks have seen a slew of hacking exploits with hundreds of millions lost.

While private banks shunned crypto a few years ago, with the market skyrocketing since 2020, some banks have warmed up to it. In May, Swiss bank Julius Baer Group Ltd announced that it will offer crypto services to wealthy clients. Last year, Citibank said that it would develop crypto-related services due to growing client interest.

Tee said:

โ€œIf you look at the volatility for the last two years, you can make a lot of money, you can lose a lot of money.

The question is, when do we bring the clients into the picture?โ€

Not everyone is scared of crypto

According to Nanda Ivens, chief marketing officer at Indonesian digital trading platform Tokocrypto, venture capital funds and institutions are displaying more interest in the crypto space, despite the recent turmoil, Bloomberg reported. For instance, Indonesia-based crypto fund Cydonia Capital raised $100 million

As an example, he cited Indonesian crypto fund Cydonia Capital recently raised $100 million, Ivens said.

โ€œThere is a lot of interest forย Web3 projects, especially when there are positive, good deal flows coming through those Web3 venture capital funds.โ€

But still, most remain wary of the crypto market and its prospects, despite the recent rallies. Rich Teo, co-founder and CEO of Paxos Asia said he is “bearish” on crypto and expects more “deleveraging.”