Barclays , a British global investment bank has said the finnancial institution may invest in Bitcoin in the coming years. This statement was made by Will Hobbs the head of investments in Barclays’ asset management arm.
Barclays’ View On Bitcoin
Will Hobbs noted that despite the surge and pump in price of Bitcoin, the firm is not yet interested in it. Speaking in a Business Insider interview, he said they are willing to stay on the sideline at the moment.
The major reason being that the said cryptocurrency is volatile and the investment bank can’t afford to eneterbsuch volatility race at the moment.
Although the bank may later consider investing in Bitcoin, however proper scrutinization and several positive opinions must be gotten before Barclays runs into any investment plan.
Expressing his view on the topic he said;
“To add an investment to our portfolio, a number of conditions must be met. First, the expected return of a financial instrument must be positive. In addition, it must be interesting from a diversification point of view.”
Barclays Potential Entry Point
Hobbs explained the only condition at which the firm can invest in Bitcoin. Barclays will later end up investing in Bitcoin, if the cryptocurrency reaches a point where the returns on it will be positive.
He said, “it may well be that bitcoin will meet both conditions over time. But at the moment it is difficult to say which way things are going.”
Although Barclays is still undecided on its plans to invest in Bitcoin, a famous bank in US has set out plans to be involved in cryptocurrency.
A report states that, Bank of New york Mellon Corp the largest custodian bank in the world is creating a new digital custody platform. This platform can be used by clients who wishes to use digital currencies to transact.
This move may propel Barclays to hasten their future plans to invest in the crypto space.