- Temasek is reluctant to put money into cryptocurrency corporations as a result of regulatory uncertainty.
- Its CIO Rohit Sipahimalani mentioned the cryptocurrency market with CNBC in the present day.
- Temasek additionally posted its worst return since 2016 on Tuesday morning.
Now isn’t the proper time to put money into crypto corporations, says Rohit Sipahimalani, chief funding officer at Temasek.
Why is Sipahimalani avoiding cryptocurrencies?
Bitcoin’s large development because the starting of this 12 months has proven that cryptocurrencies are right here to remain. BlackRock’s newest utility for the Spot Bitcoin ETF can also be an extra stamp of approval.
Nevertheless, Sipahimalani is reluctant to reveal his Singapore-based funding agency for cryptocurrency corporations as a result of regulatory uncertainty. Chatting with CNBC this morning, he mentioned:
There’s a number of regulatory uncertainty on this surroundings. We’d not be comfy investing in inventory markets given the present scenario.
The Securities and Alternate Fee is at present battling Ripple, the corporate that backs XRP. She additionally just lately sued Biance and Coinbase for violating US securities legal guidelines.
Temasek was as soon as an investor in FTX
Additionally on Tuesday, the state-owned conglomerate cited macro and geopolitical challenges and posted a 5.07% drop in annual shareholder returns, the worst since 2016.
In accordance with Sipahimalani, Temasek Holdings Restricted is open to investing in cryptocurrency corporations, however solely in a extra favorable surroundings.
When you’ve got the proper regulatory framework, and we prefer it, and you’ve got the proper funding alternative, there is no motive not to have a look at it.
Notice that Temasek wrote down its whole funding in FTX to “zero” final November. His portfolio web value is round $287 million on the time of writing.
