As Bitcoin crosses the historic $100,000 mark and the United States celebrates Donald Trump’s return as a self-proclaimed “crypto president,” one might expect the world’s largest investors to jump on the cryptocurrency bandwagon. However, during the World Economic Forum (WEF) in Davos, some of the biggest financial players expressed hesitation, citing concerns about the fundamentals of crypto assets.
A Risk Indicator, Not an Alternative
Anne Walsh, Chief Investment Officer at Guggenheim Partners, dismissed the idea of cryptocurrencies fulfilling their original vision as an alternative to traditional banking. “To me, crypto correlates more with Nasdaq than with banking—it’s a risk-on appetite indicator,” Walsh said during an interview at the Reuters Global Markets Forum. Despite managing over $335 billion in assets, Guggenheim has chosen not to invest in cryptocurrencies.
Norway’s Wealth Fund Stays Away
Nicolai Tangen, CEO of Norway’s $1.8 trillion sovereign wealth fund—the largest in the world—echoed similar sentiments. He confirmed that crypto does not align with the fund’s investment strategy and isn’t likely to become part of their portfolio anytime soon, even as Bitcoin hit a record $109,071 on the day of Trump’s inauguration.
Crypto Still Too Speculative for Many
Saira Malik, Chief Investment Officer at Nuveen, which oversees $1.3 trillion in assets, shared her reservations about cryptocurrency. “The challenge is understanding the true fundamental value of crypto,” Malik explained. While Nuveen avoids direct exposure to cryptocurrencies, it does invest in companies with some ties to the digital asset space.
A Focus on Core Business
For Los Angeles-based asset manager TCW Group, which handles nearly $200 billion in assets, crypto remains outside their current strategy. Melissa Stolfi, the firm’s Chief Operating Officer, emphasized their priority to focus on existing business operations rather than venturing into crypto. “There’s a lot of intellectual talent and resources needed to excel in this area,” she added.
The Divide in Sentiment
Bitcoin’s price surge—fueled by Trump’s pro-crypto stance and the approval of spot Bitcoin ETFs last year—has attracted institutional attention. Yet, these mixed reactions highlight a divide between those who see crypto as an innovative financial tool and others who view it as speculative and volatile.
For now, despite its record-breaking performance, crypto continues to face skepticism among some of the largest asset managers in the world. While the market remains bullish, the cautious stance of these financial giants reflects the ongoing uncertainty surrounding the long-term value and role of cryptocurrencies in traditional finance.
The divide between optimists and skeptics at Davos underscores that while crypto may have made significant strides, its acceptance among global financial heavyweights remains far from universal.
