David Bailin of Citibank thinks bitcoin will do well due to high investor interest. Noting that cryptocurrencies can be part of a portfolio, the executive sees better investment opportunities than bitcoin in the giant’s unstoppable trends.
Bitcoin is doing well, predicts Citi CEO.
David Beilin is Managing Director and Chief Investment Officer (CIO) of Citi Private Bank, a subsidiary of Citigroup that specializes in servicing high net worth individuals and families. The Citibank website presents him as a wealth expert. Beilin spoke about bitcoin in an interview with Yahoo Finance on Wednesday. He said:
I tell people that I have no doubt that bitcoin will do well because of the interest in it from all sides.
However, the Citi executive noted that it actually scares him. Beilin joined Citi in 2009 as global head of managed investments and was named global head of investments in October 2017.
Beilin explained that at Citi Private Bank and Citi Global Wealth, we really focus on this concept of underlying and opportunistic investing. The first group represents 85% or more of traditional portfolio investments and focuses on fundamental investments. In the latter case, Citi clients can choose where they want to deal with Bitcoin.
Citi Private Bank’s CIO warns:
To access bitcoin, if you don’t have real bitcoin, one of these funds or entities can be a very, very inefficient way to do this.
In January, Citi announced the creation of a single wealth management organization, Citi Global Wealth, which will combine the wealth management teams of Global Consumer Banking (GCB) and the Institutional Clients Group (ICG).
CIO looks for ways to introduce customers to bitcoin, but sees better opportunities elsewhere
Beilin said he is looking for ways to offer clients a risky approach to bitcoin, including a total return swap that would allow clients to invest in the appreciation of the real digital currency. He said: I think that’s probably the most effective method.
The Citibank wealth expert added that while bitcoin is making the news, he sees better opportunities for Citi’s clients in trends that are unstoppable, such as Big Data, satellite technology, solar power, etc. The CIO said:
These huge unstoppable trends, as we call them, are very good investment opportunities that are probably much better than bitcoin in the long run, or certainly in the long run in my opinion.
He added that it is possible to identify these investments, quantify them, find the companies that attract them, and see that the size of the market we are talking about is extraordinary.
Earlier this month, Citigroup released a detailed report indicating that bitcoin is at a turning point and could become the currency of choice for international trade. We could be at the beginning of a massive transformation of cryptocurrencies into the mainstream, the company writes.
What do you think of Citi management’s position on bitcoin? Let us know your comments in the section below.
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