An investment expert feels there are “no signs of spillover” from cryptocurrency into the wider economic market.
The future of the crypto market has been thrown into doubt following the recent collapse of FTX, and Laith Khalaf – an investment analyst from AJ Bell – has claimed that crypto and traditional assets remain quite distinct.
Laith told 'Squawk Box Europe': “Crypto has a lot of money but it’s kind of built up as a separate ecosystem.”
Despite this, Laith has suggested that the two spheres could still overlap at some stage in the future.
He added: “If we had a more system-wide issue you could start seeing it affecting other assets, but I don’t really see that.”
Earlier this month, a financial watchdog in Hong Kong warned about the risks of online platforms for cryptocurrency.
The Securities and Futures Commission (SFC) sounded a note of caution about the potential risks associated with cryptocurrencies and other digital asset deposits.
The SFC said in a statement: “Investors are urged to be wary of the potential high risks (associated with) virtual asset arrangements.”
The watchdog subsequently explained the dangers posed to investors.
It said: “While some VA (virtual asset) Arrangements are commonly labelled or marketed as ‘deposits’ or ‘savings’ products, they are not regulated and are not the same as bank deposits. Investors are not afforded with any form of protection.
“If they cannot fully understand them and bear the potential significant or total losses, they should not make an investment.”
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