Bitcoin is increasingly ‘cultist’ and supported by ‘magical thinking’, says Barclays wealth investment chief – Business Insider

Will Hobbs_latest
Will Hobbs is chief investment officer at Barclays Wealth & Investments

  • The zeal around bitcoin is “increasingly cultist” according to Will Hobbs, the chief investment officer of Barclays Wealth & Investments.
  • Hobbs also said a rise in interest rates could dent the world’s biggest cryptocurrency.
  • Yet big names like BlackRock are increasingly interested as the bitcoin rally continues.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin sounds “increasingly cultist” and could prove to be a “flightless bird” if interest rates rise, the chief investment officer of a major wealth manager has said.

Will Hobbs, the CIO Barclays Wealth & Investments, said his firm is not interested in the world’s biggest cryptocurrency at the moment, despite its recent record-breaking rally. He added that he thought the currency was backed by a “lot of magical thinking.”

Bitcoin soared above $50,000 for the first time last week and topped $53,000 on Friday. Increasing interest from big firms from Tesla to BlackRock has added fuel and legitimacy to the rally.

Yet retail investors remain the central drivers, according to analysts at JPMorgan. They said in a note last week that there had been “relatively little institutional flows” over the past 5 months.

Hobbs said Barclays Wealth Management was steering clear of the cryptocurrency mainly because of its wild