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Abrdn, Amundi, Aviva Investors: FTX collapse a ‘major setback’ for crypto uptake

The collapse of FTX may further deter wary institutional investors from entering the crypto market amid calls for tougher regulation

Sam Bankman-Fried, once a hero in the crypto world, has seen his empire crumble around him, leaving others less sure on the asset class
Sam Bankman-Fried, once a hero in the crypto world, has seen his empire crumble around him, leaving others less sure on the asset class Photo: Lam Yik/Getty Images

Heavyweight fund groups including Abrdn and Aviva Investors said other big name investors that have steered clear of cryptocurrencies will be extra cautious of entering the market following FTX's collapse.

Asset managers have previously voiced concern over cryptocurrencies such as bitcoin, claiming a lack of regulatory oversight, extreme volatility and uncertain diversification benefits make them a questionable fit for portfolios.

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