American major bank BNY Mellon says it's the primary international bank to enable customers to hold, exchange and issue digital currencies. However, one of the bank's fund management branches doesn't quite agree with the company's crypto strategy.
Related: BNY Mellon opened a service for storing cryptocurrencies
BNY Mellon's subsidiary Insight Investment which has around $1 T under management, finds that BTC might not be apt for the majority of institutional investors as it faces volatility and regulatory issues. The unit's head of currency solutions, Francesca Fornasari, says one factor that prevents broader adoption is delayed and costly operations.
During a recent interview with Bloomberg, Fornasari said investors aiming to get exposure can do it through specialist funds, which have experience in blockchain tech. Previously she pointed out that it's more complex to estimate Bitcoin's rate than gold. Currently, BTC trades at around $34.700. This is around 46% down from its all-time high of $64.800 reached in April.
The bank executive mentioned delivering custody services for digital assets is important as they will play an essential role in the investment scope. In February 2021, BNY Mellon revealed opening a new custody division for cryptocurrencies.