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Cryptocurrency investments still need to be handled with great care, taking into account its volatility.
“I don’t think Crypto is an asset class,” Edward Jones CEO Penny Pennington said of Yahoo Finance’s opening bid podcast (video above, listen below).
Pennington said, “While there is no fundamental value behind crypto, it is becoming a market innovation related to blockchain innovation. It is very realistic and will have a positive impact on the industry and investors.”
Edward Jones continues to look at ways to join the burgeoning crypto space, as long as it makes sense for wealth-building clients, Pennington said. However, they currently do not offer crypto products and are in no hurry to the market.
To the point of Pennington, the updated crypto volatility may be wondering about its position as a true asset, especially as a diversification tool within the portfolio.
Bitcoin prices accounted for around 24% as investors dived the recession and growing fears of Trump’s tariffs, surpassing the all-time high of $109,000 in early December.
Bitcoin has dropped by around 13% over the past month.
According to Crypto’s publication, the Bitcoin ETF spill has raised about $750 million over the past two days amidst pressure on price. BlackRock (BLK), the largest publisher of Bitcoin ETF, reportedly sold around 2,000 Bitcoin in the last 24 hours.
The sharp pullback has been extended to other cryptocurrencies such as Dogecoin and Ethereum. Coinbase (Coin) and Robinhood (Hood) crypto-sensitivity stocks also brought a lot of value this month.
Coinbase is currently down 21% per year, but Robinhood is sticking to modest profits.
“Now, a lot of our clients say, ‘You know, I want to be part of what’s going on (in the code) and I want to understand this better.’ That doesn’t mean we need to understand it better.
Three times a week, I chat with the biggest names of the business and market in my opening bids with insightful conversations. Find more episodes on the Video Hub or check out the streaming service of your choice.
Brian Sozzi is the executive editor of Yahoo Finance. Follow Sozzi on X @Briansozzi, Instagram and LinkedIn. A hint for the story? Please email [email protected].