UBS Group AG (Tiker: UBS.NYSE), one of the world's largest investor groups, will not back the crypto token because there is no government oversight involved, Bloomberg reported.
UBS’s Mark Haefele, argued that the currency has not yet reached enough mass to be considered a viable currency for investment.
The total sum of all cryptocurrencies is “not even the size of some of the smaller currencies" that UBS would allocate to, he said.
He said: "All it would take would be one terrorist incident in the US funded by Bitcoin (TIKER: BTC.EXANTE) for the US regulator to much more seriously step in and take action.
"That’s a risk, an unquantifiable risk, Bitcoin has that another currency doesn’t."
UBS Chairman Axel Weber this month said Bitcoin was a speculative investment and not a store of value.
Bitcoin capped a resurgent week by climbing within a few dollars of a record $8,000 on Friday.