Bitcoin is “not an asset” and has “no intrinsic value,” a $225 billion investment firm says.

HL is the third major financial institution to recently remind its clients that cryptocurrencies may not depend on anything Deutsche Bank and Elliott Management.

“While Bitcoin’s long-term returns have been positive, Bitcoin has seen several periods of significant losses and is a highly volatile investment – ​​far riskier than stocks or bonds. HL’s investment perspective is that Bitcoin is not an asset class, and we do not believe the cryptocurrency has characteristics that mean it should be included in growth or income portfolios and should not be relied upon to help clients achieve their financial goals.” Performance assumptions cannot be analyzed and the company said that cryptocurrencies, unlike other alternative asset classes, have no intrinsic value In a statement Which also indicated that the platform will begin offering cryptocurrency trades to clients.

A few days ago, Deutsche Bank told clients that Bitcoin was “Backed by nothing“Although it is also likely that it will end up being used as a reserve asset by central banks in the next few years.

Back in January, activist investor Elliott Management told clients that Bitcoin faced an “inevitable collapse” because as an asset it “No substance“.

The argument that cryptocurrencies have no fundamental value is based on the view that other assets – stocks, bonds, cash, property or their derivatives – typically give their holders a fundamental right, such as dividends, interest, land or other legal rights. In contrast, cryptocurrencies are merely a medium of exchange whose price reflects only the balance between supply and demand.

While HL is right that Bitcoin is volatile and risky, it has also been a profitable trade. Bitcoin is currently priced at $121,000 per coin, and is up 30% this year, compared to the S&P 500, which is up 15%.

luck I have contacted HL for comment.