UBS’s Mark Haefele, argued that the currency has not yet reached enough mass to be considered a viable currency for investment.
The total sum of all cryptocurrencies is “not even the size of some of the smaller currencies" that UBS would allocate to, he said.
He said: "All it would take would be one terrorist incident in the US funded by Bitcoin (Bitcoin) for the US regulator to much more seriously step in and take action.
"That’s a risk, an unquantifiable risk, Bitcoin has that another currency doesn’t."
UBS Chairman Axel Weber this month said Bitcoin was a speculative investment and not a store of value.
Bitcoin capped a resurgent week by climbing within a few dollars of a record $8,000 on Friday.