Europe’s Largest Asset Manager Amundi Is Anti-Bitcoin

Amundi, Europe’s largest asset manager, managing $ 1.7 trillion in assets, states that Bitcoin could undergo a brutal correction. Amundi does not plan to offer crypto products to its customers in the near future.

amundi vs bitcoin

Amundi, Europe’s largest asset manager, said Bitcoin and other cryptocurrencies could face a “brutal” price correction when market regulators eventually focus on the cryptocurrency industry.

According to the report of Financial News, Amundi’s Vice President of Investments Vincent Mortier said in his comments on the industry report that cryptocurrencies cannot be viewed as money or an asset worth investing in.

The asset management firm, which manages $1.7 trillion in assets, has been open to the public for the first time in cryptocurrencies.

In his statements, Mortier said, “To date, cryptocurrencies have not shown any proven value or a recognized unit of account, neither a universal payment instrument. Cryptocurrencies do not have a rational economic underlying asset. Therefore, we cannot talk about the valuation model.”

Mortier explained in another interview that it is difficult to justify Bitcoin over $ 50,000.

The cryptocurrency had a rocked rise of over $61K earlier this month.

Mortier said the upcoming intervention by regulatory agencies like the Bank of China, the ECB in Europe and the Federal Reserve of the US will not reduce Bitcoin to zero, but it could lead to the digital asset dropping from its recent points. On the other hand, the approach of national banks to Crypto Currencies also seems varied but cautious.

But given the possibilities, I wouldn’t be surprised if it quickly goes back to $30K or $20K. It is very difficult to say what a fair value is ”the investment expert added.

Regulators are probably concerned about stable coins, which are digital assets primarily tied to fiat currencies, on the grounds that they constitute an “attack on the monopoly of states,” Mortier said.

“At least initially, complete legal immunity and anonymity seem to have taken a central place in the development of the assets, therefore, market regulators in the G7 countries are on the side of regulating the cryptocurrency ecosystem,” Amundi’s report said.

Mortier stated that Amundi currently does not offer its customers to access any cryptocurrency or crypto-related funds, and is not planning to do soon.

The attitude of the investment specialist is completely at odds with the United States investment banks Goldman Sachs, Citi, and BNY Mellon, which started an important amount of activity in the crypto world and blockchain this year.

In Amundi’s report, it was stated that Bitcoin, presented as a form of “digital gold” for investors, is “at best an assumption to be affirmed and at worst an illusion”, as JPMorgan advocates.

Bitcoin has yet to prove its ability to protect against excess inflation and risk in times of financial crisis like gold has done for centuries, Mortier said.

In the report, “Cryptocurrencies rose during the Pandemic economic crisis but did not undergo a financial stress process. Their correlations with other asset classes are unknown. It is doubtful to give the same status with gold becoming early to cryptocurrencies, whose upward potential is still a question mark.”

Mortier also said he was surprised by the emergence of institutional investors into cryptocurrency-linked products, as well as sustainability and environmental goals in the financial sector. “Many of our customers want to be funded by ESG funds in some way. But looking at their carbon footprint, Bitcoin is not doing well. We cannot ignore these issues,” Mortier said.


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