Capital Group, one the world's oldest and largest investment management organizations with over $2.6 trillion in assets under management, said in an interview with the South China Morning Post that the largest cryptocurrency by market capitalization — bitcoin (EXANTE: Bitcoin) — could become "one of the most profitable assets."
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According to Equity Portfolio Manager, Mark Casey, cryptocurrencies have become a "good inflation hedge" as they are independent from central banks and have limited supply.
"There is tremendous appeal for this type of asset," Casey said.
Casey noted that even a small but increasing portion of the world's $600 trillion financial assets allocated to bitcoin would continue to drive up the price of the cryptocurrency. Casey's comments come after bitcoin reached a new all-time high at $67,128. As of press time, bitcoin is down by 7% and is trading at $62,740.
Earlier this month, the US Securities and Exchange Commission (SEC) approved the first US bitcoin futures exchange traded fund (ETF) from ProShares — Bitcoin Strategy ETF. The company launched trading on Oct. 19 at the New York Stock Exchange with the ticker "BITO."
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