According to Bloomberg, DWS fund managers are divided on the value of cryptocurrencies, with some believing they hold no value and others seeing potential. This debate comes as the cryptocurrency market experiences a sharp rebound, fueled by optimism that US regulators may soon approve crypto ETFs. Bitcoin has more than doubled in value this year, outperforming stocks, and digital tokens have a total market cap of approximately $1.3 trillion.
DWS is developing crypto ETFs for retail buyers, and its Fintech Fund has an expanded mandate to purchase crypto. Grayscale Investments LLC's bid to convert its Bitcoin trust into an ETF received a significant boost in August when a court overruled initial objections from the US Securities and Exchange Commission. Crypto investment products, such as Bitcoin futures ETFs, experienced their largest single week of inflows last week since July 2022, according to asset manager CoinShares.
However, many skeptics believe that cryptocurrencies will remain on the speculative fringe even if ETFs make them more accessible. DWS fund manager Jesch points out the difficulty in forecasting digital currencies due to their lack of history, collateral, economy, and central bank support. The future value of cryptocurrencies remains uncertain, with some arguing it could be zero or as high as $40,000.
