Despite BNY Mellon'due south entrance into Bitcoin (BTC), the CEO of one of the company'south nugget direction units is still sceptical about major risks associated with the world's largest cryptocurrency.

Francesca Fornasari, head of currency solutions at BNY Mellon's subsidiary Insight Investment, believes that Bitcoin may not be suitable for well-nigh institutional investors due to extreme volatility, low liquidity, governance issues and surround-related risks.

In a Tuesday Bloomberg interview, Fornasari said that Bitcoin can be more hard to evaluate than gilded due to its massive toll swings, which further complicates its possible reactions in an inflationary environment.

"At the end of the day, you should be aware of the fact that if you're investing in Bitcoin, in that location's a whole number of different factors and considerations that are going to affect the value of your investment, that accept nothing to do with aggrandizement or inflation hedges," she said.

The foreign commutation expert stated that Bitcoin's slow and expensive transactions could be a major impediment to mainstream adoption. "We're skeptical in terms of the ability of Bitcoin to accept over equally a means of payment," Fornasari said.

Nonetheless, Insight Investment is optimistic about altcoins, or other cryptocurrencies than Bitcoin and expects to see a rising in such digital assets, peculiarly those that solve issues like the speed and cost of transactions, free energy usage and volatility, according to Fornasari.

Related: Bitcoin needs clear regulations to be less volatile, Bridgewater analyst says

Insight Investment is ane of the largest global asset management companies with around $ane trillion in assets under management. The visitor has been a subsidiary of BNY Mellon since 2009 after the U.S. banking giant caused it from Lloyds Banking Group.

The business firm'due south sceptical stance on Bitcoin comes despite BNY Mellon actively moving into Bitcoin after the banking concern announced its plans to custody and transfer Bitcoin and other crypto every bit an asset managing director in February this year. The business firm too argued that underperformance of one of its exchange-traded funds was acquired by the lack of exposure to companies investing in Bitcoin.