Fund managers have reacted swiftly to the latest price volatility in the cryptocurrency market triggered by recent Elon Musk tweets that have raised doubts over Tesla’s future relationship with Bitcoin, the Financial Times reports.
Fast Facts:
- T Rowe Price President and Head of Investments Rob Sharps recognized the impact of cryptocurrencies across capital markets, but said: “Ultimately, the mandates we manage for clients are not well suited for investing in cryptocurrencies, and we recognize the high level of speculation in this space.”
- Jason Price, chief investment officer at Glenmede Investment Management, said his company was keeping a distance from the asset class and expressed doubt as to whether the US Federal Reserve and market regulators were “fans of the current market structure for cryptocurrencies.”
- UBS Wealth Management said it expected more stringent policy and regulatory controls for digital currencies as they became more mainstream. It said the market reaction to Musk’s tweet “highlights risks companies face if they take on cryptocurrency balance sheet exposure.”