FTX’s bankruptcy leads Wall Street’s big fund cryptocurrencies to step out one after another

As FTX, the world’s second-largest cryptocurrency (virtual currency) exchange, eventually filed for bankruptcy, famous funds around the world are withdrawing from the cryptocurrency market one after another, Bloomberg reported News on the 13th (local time).

Previously, major US funds invested in cryptocurrencies in order to diversify their portfolios, but following the Terra-Luna incident, even FTX, an exchange, filed for bankruptcy.

Sequoia Capital, a giant in the US venture capital (VC) industry, invested $210 million (about KRW 274.9 billion) in FTX, but as FTX filed for bankruptcy protection, the entire $210 million was written off. It said it would no longer invest in digital currency.

Fidelity International, a well-known fund that manages $646 billion (about 848 trillion won), has also decided to reduce its exposure to digital currencies.

Salman Ahmed, chief investment strategist at Fidelity, said in response to the fall of FTX, “It raises questions about the viability of cryptocurrencies,” and “it will significantly reduce investments in cryptocurrencies.”

Hani Reda, asset portfolio manager of Pinebridge Investments in London, said, “Bitcoin was once considered a potential asset, but the FTX debacle clearly proves that it is not a potential asset class.” It will not replace him.”

(Seoul = News 1)

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