FIRST AIRED: October 23, 2017

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Transcript

00:00:01
>> A single BitCoin's worth $5,700, surging in value, exploding tenfold over the last year. But as Reuters' cryptocurrency watcher Jemana Kelly's found, BitCoin's lack of regulation and volatility means institutional investors, such as pension funds, insurance companies, and mutual funds, are still keeping away.>> They need to be sure that the money is there when they need to pay it out.
00:00:27
It's just too risky, even if the potential returns are huge. I mean, their strategy is capital preservation, that's their goal, it's not so much maximizing returns. There are some traditional financial players getting into this now, some of the big hedge funds, high frequency trading firms are getting involved.
00:00:43
Because obviously it's a pretty attractive asset class, in terms of the potential returns, but the institutional investors are just steering clear.>> BitCoin's total value is just under $100 billion, that's bigger than Morgan Stanley. But its volatility has been a roller coaster, losing a third of its value in only two weeks last month, then surging again to new highs.
00:01:07
It also can shake a shady image, raising fears of a crackdown by national governments.>> We spoke to the head of hedge funds at a major European bank, and he said that out of the more than 100 hedge funds that he invests in, none of them invest in cryptocurrency.
00:01:24
And although this might be a potential way in to invest in a crypto fund, it allows someone who is not familiar with the market a potentially slightly lower risk and easy way into the market. Even someone who's investing in over 100 hedge funds doesn't think that it's worth the risk.
00:01:39
Thinks that it's too linked to the kind of criminal underworld, to the dark web, to be worth risking putting other people's money into.>> BitCoin was invented on the concept of working with or without major financial institutions. Their lack of support doesn't mean it's going away.