Luke Ellis also called digital assets a pure trading instrument due to their volatility.
Man Group hedge fund CEO Luke Ellis said in an interview with the Financial Times that inflation is the main reason why cryptocurrencies are becoming more popular with investors.
Luke Ellis noted that his hedge fund, which manages $ 127 billion in assets, trades cryptocurrencies, but this does not mean their recognition as an asset class.
The head of the Man Group also compared cryptocurrency to “tulip mania”.
According to Luke Ellis , digital assets can be called a pure trading instrument due to their volatility, however, they have no intrinsic value.
Tulipomania is the first ever financial bubble to form in the Netherlands in the first half of the 17th century.
“If you look at cryptocurrencies in general, it is a pure trading instrument. There is no intrinsic value in this. This is a tulip bulb, ”said Luke Ellis .
On July 21, it became known that most of the clients of the asset and capital management division of the investment bank JPMorgan began to view bitcoin as an asset class and want to invest in it.
At the end of May, Goldman Sachs recognized Bitcoin as an asset class. Then the bank reported on the growing demand for cryptocurrencies among institutional investors and asset managers.
